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American Securities and CD&R Complete $8.8B Foundation Building Materials Sale

1. Lowe's acquires Foundation Building Materials for $8.8 billion. 2. FBM distributes interior building products, enhancing Lowe's offerings. 3. FBM's revenue and EBITDA grew significantly under previous ownership. 4. Acquisition supports Lowe's Total Home strategy for pros and consumers. 5. FBM's extensive network enhances Lowe's market presence in North America.

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Why Bullish?

Lowe's acquisition of FBM diversifies its product offerings and strengthens market position. Similar past acquisitions, like The Home Depot's purchase of HD Supply, resulted in improved revenues and shareholder value.

How important is it?

The acquisition is substantial, potentially driving significant revenue growth over time. Such strategic moves significantly shape market perceptions and investor confidence.

Why Long Term?

The acquisition aligns with Lowe's growth strategy, expected to yield benefits over several years. Companies often take time to integrate acquisitions and realize full synergies.

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American Securities Logo (PRNewsfoto/American Securities LLC) CD&R Logo (PRNewsfoto/American Securities LLC) , /PRNewswire/ -- American Securities LLC ("American Securities") and CD&R today announced they completed the sale of Foundation Building Materials, Inc. ("FBM" or the "Company"), a leading building materials and construction products distribution company, to Lowe's Companies, Inc. ("Lowe's") (NYSE: LOW), in a transaction valued at approximately $8.8 billion. FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. FBM will join Lowe's Total Home strategy, which provides a full complement of products and services for Pros and Consumers alike, enabling a Total Home solution for every need in the home. Kevin Penn, Partner at American Securities, commented: "We want to thank Ruben Mendoza and the entire Foundation Building Materials team for their exceptional partnership over the last four and a half years, and we are excited to see the company enter its next chapter under Lowe's ownership." "We are proud to have supported Ruben Mendoza and the FBM team as they set the foundation for accelerated organic growth and strengthened the business," said Tyler Young, Principal at CD&R. "We believe FBM will be an outstanding platform in partnership with Lowe's to serve pro customers and build on long-standing supplier relationships."Under the ownership of American Securities and CD&R, FBM became an industry leader, with a network of over 370 locations in the United States and Canada serving 40,000 Pro customers. Since its acquisition in 2021, the company has experienced exceptional growth resulting in 27% per annum revenue growth and 31% per annum EBITDA growth.About FBM Founded in 2011 and headquartered in Santa Ana, California, FBM is an industry-leading building materials and construction products distribution company. With over 370 locations across the U.S. and Canada, FBM has an expansive North American reach with a mission to serve the changing needs of the professional construction trades. For more information, visit www.fbmsales.com.About American Securities Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion. American Securities and its affiliates have more than $23 billion under management. For more information, visit www.american-securities.com.About CD&R Founded in 1978, CD&R is a leading private investment firm with a strategy of generating strong investment returns by building more robust and sustainable businesses through the combination of skilled investment experience and deep operating capabilities. In partnership with the management teams of its portfolio companies, CD&R takes a long-term view of value creation and emphasizes positive stewardship and impact. The firm invests in businesses that span a broad range of industries, including industrial, healthcare, consumer, technology and financial services end markets. CD&R is privately owned by its partners and has offices in New York and London. For more information, please visit www.cdr.com and follow the firm's activities through LinkedIn and @CDRBuilds on X/Twitter.Media Contacts Prosek Partners for American SecuritiesJoshua Rosen / Devin Shorey[email protected]CD&RJon Selib[email protected]SOURCE American Securities LLC WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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