One of North America’s largest dealers in drywall and ceilings Foundation Building Materials began public trading of its shares early this year. The private firm has seen its revenues rise drastically in less than four years to reach $1.4 billion in sales and 210 branches in the U.S. and Canada, in a story reported by ProSales’ Editor-in-Chief Craig Webb.
The 12.8 million shares in FBM common stock (with an option to sell up to 1.92 million more) were priced at $14 each for today's trading, below the $17 to $19 range the company had forecast in a February’s SEC filing. It rose as high as $15.85 before closing at $15.50.
The private equity group Lone Star Funds bought FBM in 2015. LSF owned all the shares prior to the public offering retains between 66 and 70 percent of all shares after the public offering.
FBM, of Tustin, Calif., began in 2011 with a single branch in Southern California and had $113.7 million in sales in 2013. It has made 19 acquisitions since then, most notably Winroc.
According to an SEC filing, for all of 2016, FBM expects to report sales between $1.38 and $1.4 billion and gross profit between $387 million and $402 million, and a net loss between $36.2 million and $23.9 million. In the nine months ended Sept. 30, FBM got 42 percent of its revenue from wallboard and accessory sales, 14 percent from sales of metal framing, 16 percent from sales of suspended ceiling systems, and 10 percent from sales of commercial and industrial insulation.
The company says it has more than 30,000 customers, which it serves with 325 field sales reps, a fleet of 2,725 vehicles. More than 90 percent of its branches are in the United States.