Foundation Building Materials Capitalizes on Construction Demand
As the world opened up after the pandemic, the construction industry saw a boom in demand, according to Private Equity Wire. Foundation Building Materials (FBM) pursued a buy and build strategy to capitalize on this growth, with an investment from American Securities driving the development of an e-commerce platform to target its specialized customer base.
FBM’s Buy and Build Approach
FBM’s strategy involved acquiring and integrating assets, as discussed by American Securities Senior Partner Kevin Penn at the 0:56 mark in the interview. Penn also addressed maintaining efficiency during periods of growth at 2:36, highlighting how FBM managed operations amid expanding demand.
Development of the E-commerce Platform
The investment from American Securities enabled FBM to develop its e-commerce platform, as explained by Penn at the 5:00 mark, which aimed to reach its target audience as noted at 11:00. Additionally, CD&R served as a co-investor, bringing operational expertise as discussed at 12:42.
Investor Roles in the Strategy
American Securities played a key role in funding FBM’s initiatives, while CD&R contributed expertise, according to Private Equity Wire. This collaboration supported FBM’s efforts to enhance its market position through digital tools.
