Secondary Buyout • Distribution

American Securities Exit Foundation Building Materials

On January 31, 2024, private equity firms CD&R and American Securities invested in distribution company Foundation Building Materials from American Securities

Investment Context
  • This is CD&R’s 17th and American Securities’ 5th transaction in the Distribution sector.
  • This is CD&R’s 64th and American Securities’ 78th transaction in the United States.
  • This is CD&R’s 2nd and American Securities’ 7th transaction in California.
Investment Fate
  • Foundation Building Materials was sold to a publicly-traded strategic buyer in 2025 for 8.8B USD.

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Investment Summary

Date January 31, 2024
Target Foundation Building Materials
Sector Distribution
Investor(s) CD&R
American Securities
Sellers(s) American Securities
Deal Type Secondary Buyout
Advisor(s) RBC Capital Markets (Financial)

Target Company

Foundation Building Materials

Santa Ana, California, United States
Foundation Building Materials is a specialty building products distributor of gypsum wallboard, suspended ceiling systems, metal framing, insulation, and complementary products throughout North America. Foundation Building Materials was founded in 2011 and is based in Santa Ana, California.
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Investors Overview 2

Investor

CD&R

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 30.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Clayton, Dubilier & Rice LLC (CD&R) is a large private equity firm that targets non-core divestitures of large corporations, growth equity financings, traditional buyouts, and corporate/family partnerships. CD&R looks for opportunities in North America, Western Europe, and Asia and will consider businesses in a wide range of sectors including consumer/retail, healthcare, industrials, and services. Prospective companies generally lead their respective markets, have stable cash flows, and possess competitive advantages through differentiated products, services, or processes. CD&R was formed in 1978 and has offices in New York City and London.


Deal Context for Investor #
Overall 89 of 94
Sector: Distribution 17 of 17
Type: Secondary Buyout 25 of 26
State: California 2 of 2
Country: United States 64 of 68
Year: 2024 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-19 Cynosure

Westford, Massachusetts, United States

Cynosure is a developer and marketer of aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and pigmented lesions, rejuvenate the skin, liquefy and remove unwanted fat through laser lipolysis and temporarily reduce the appearance of cellulite. Cynosure was founded in 1991 and is based in Westford, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-20 CRC Group

Birmingham, Alabama, United States

CRC Group is a Property and Casualty wholesale brokerage and MGA platform. CRC Group places over $30 billion of premiums through its specialty wholesale and underwriting insurance businesses. CRC Group is based in Birmingham, Alabama.

Buy $15.5B
Investor

American Securities

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 23.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Securities is a large private equity firm that typically partners with management when pursuing company acquisitions. American Securities typically targets US-based with $50 to $200 million of EBITDA and valued up to $2 billion. Areas of interest include consumer products, restaurants, healthcare, industrial, aerospace, defense, agriculture, environmental, paper/packaging, energy, and specialty chemicals. The Firm was originally formed in 1947 as the family office for William Rosenwald, an heir to the Sears Roebuck & Company, and began accepting outside investors in 1994. American Securities is headquartered in New York, New York.


Deal Context for Investor #
Overall 79 of 81
Sector: Distribution 5 of 5
Type: Secondary Buyout 36 of 37
State: California 7 of 7
Country: United States 78 of 80
Year: 2024 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-23 CPM

Blaine, Minnesota, United States

CPM designs, engineers, and manufactures a broad variety of branded pellet mills, oilseed processing equipment, twin screw extruders, and industrial-scale thermal processing equipment. The Company serves a global base of over 5,000 customers annually from facilities in Europe, Asia, Latin America, and North America. It produces premier process equipment and engineered systems that provide customers with a superior level of operating efficiency, durability, and reliability, maximizing process performance and machine uptime. CPM was founded in 1883 and is based in Blaine, Minnesota.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-08 NWN Carousel

Exeter, Rhode Island, United States

NWN Carousel is a provider of information systems services and solutions. These include unified communications services, data center and virtualization, network infrastructure, end user computing, applications and data services, IT staffing services, and managed services. NWN Carousel was founded in 1986 and is based in Exeter, Rhode Island.

Buy -

Seller Profile 1

SELLER

American Securities

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 23.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Securities is a large private equity firm that typically partners with management when pursuing company acquisitions. American Securities typically targets US-based with $50 to $200 million of EBITDA and valued up to $2 billion. Areas of interest include consumer products, restaurants, healthcare, industrial, aerospace, defense, agriculture, environmental, paper/packaging, energy, and specialty chemicals. The Firm was originally formed in 1947 as the family office for William Rosenwald, an heir to the Sears Roebuck & Company, and began accepting outside investors in 1994. American Securities is headquartered in New York, New York.


Deal Context for Seller #
Overall 50 of 53
Sector: Distribution 2 of 3
Type: Secondary Buyout 20 of 21
State: California 4 of 6
Country: United States 49 of 52
Year: 2024 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-23 CPM

Blaine, Minnesota, United States

CPM designs, engineers, and manufactures a broad variety of branded pellet mills, oilseed processing equipment, twin screw extruders, and industrial-scale thermal processing equipment. The Company serves a global base of over 5,000 customers annually from facilities in Europe, Asia, Latin America, and North America. It produces premier process equipment and engineered systems that provide customers with a superior level of operating efficiency, durability, and reliability, maximizing process performance and machine uptime. CPM was founded in 1883 and is based in Blaine, Minnesota.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-02-08 NWN Carousel

Exeter, Rhode Island, United States

NWN Carousel is a provider of information systems services and solutions. These include unified communications services, data center and virtualization, network infrastructure, end user computing, applications and data services, IT staffing services, and managed services. NWN Carousel was founded in 1986 and is based in Exeter, Rhode Island.

Buy -