An affiliate of private equity firm American Securities LLC plans to acquire Santa Ana-based Foundation Building Materials (NYSE: FBM) in a deal valued at $1.4 billion including debt.
The distributor of wallboard, ceiling systems and other building products said Sunday it would sell for $19.25 per share to the New York company in an all-cash transaction, representing a 27% premium to Foundation Building Materials’ closing price on Nov. 13.
Kevin Penn, a managing director at American Securities, said in a statement that the acquisition will grow Foundation Building Materials’ “global presence while further strengthening its relationships with its customers and partners.”
Foundation Building Materials was trading 26% higher during midday trading for a stock price of $19.17 and a market cap of $828 million.
