Foundation Building Materials Announces the Purchase of Certain Assets From Insulation Distributors, Inc.

Foundation Building Materials, Inc. (“FBM” or the “Company”), one of the largest specialty distributors of wallboard, suspended ceiling systems, metal framing, and complementary products in North America, announced that it has purchased two specialty building products branches in Baltimore and Washington, D.C. from Insulation Distributors, Inc. (“IDI”). FBM acquired the suspended ceiling systems, wallboard, metal framing, and commercial insulation product lines of IDI serving the Baltimore and Washington, D.C. markets. The terms of the transaction were not disclosed.

IDI is family-owned and operated, and has helped over 3,000 independent insulation contractors successfully profit and grow their own businesses nationwide. IDI will continue to operate its branch network nationwide.

“The acquisition of IDI’s specialty building products branches expands our geographic footprint to the Baltimore and Washington, D.C. markets and builds our commercial presence in the region,” said Ruben Mendoza, FBM’s President and CEO. “We welcome the teams at both locations to the FBM network.”

The Company expects the two branches’ performance to be consistent with prior years, with an estimated $16 million to $20 million in net sales for the remainder of 2020. This acquisition is expected to be immediately accretive to the Company with financial benefits driven by increased scale and savings.

About Foundation Building Materials

Foundation Building Materials is a specialty building products distributor of wallboard, suspended ceiling systems, metal framing, and complementary products throughout North America. Based in Santa Ana, California, the company employs more than 3,400 people and operates more than 175 branches across the U.S. and Canada.

Contact:

John Moten – Vice President Investor Relations – investors@fbmsales.com – (657) 900-3213

Source: Foundation Building Materials, Inc.