FBM acquires Agan Drywall Supply

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FBM acquires Agan Drywall Supply

By HBSDealer Staff - 10/02/2018
Foundation Building Materials, Inc. (FBM) has acquired Agan Drywall Supply, Inc., Agan Drywall Supply Rapid City, Inc., and Agan Tri-State Drywall Supply, Inc. (Agan).

Agan is an independent distributor of drywall, steel framing, stucco, stone veneers, insulation and complementary products. The company has a 43-year track record of and operates 3 branches in Sioux Falls and Rapid City, S.D., and Sioux City, Iowa.

Terms of the transaction were not disclosed.

Along with serving South Dakota and Iowa, Agan also delivers to Minnesota, Nebraska, and Wyoming.

“With the closing of this transaction, FBM will now be able to offer our full complement of products in three markets in the Great Plains States,” said Ruben Mendoza, FBM CEO. “Agan has a strong and successful history, largely created by the talent of their management and employees and long-standing customer relationships. Senior management from the acquired companies will continue with FBM and be leaders in the region.”

The Company expects Agan’s performance to be consistent with prior years, contributing an estimated $5 to $7 million in net sales for the remainder of 2018.

Based in Tustin, Calif, FBM distributes wallboard, suspended ceiling systems, along with mechanical insulation, through 220 branches across the United States and Canada. The company reported record sales of more than $2 billion for 2017.

On Sept. 27, FBM announced it was selling its mechanical insulation business to Dunes Point Capital, LP, for $122.5 million in a move to reduce debt.

 

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