Lowe's $8.8 Billion FBM Acquisition Propels Pro Market Expansion as Shares Climb 0.30% on $1.35 Billion Trading Volume Ranking 54th

Lowe's (LOW) shares rose 0.30% on August 20, 2025, with a trading volume of $1.35 billion, ranking 54th in market activity. The company announced a definitive agreement to acquire Foundation Building Materials (FBM) for $8.8 billion in cash, marking a strategic expansion into the professional construction market. FBM, a leading North American distributor of interior building products, operates over 370 locations and serves 40,000 Pro customers, generating $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024.

The acquisition aligns with Lowe's "Total Home" strategy, aiming to enhance offerings for professional customers through expanded capabilities, digital tools, and cross-selling opportunities. By integrating FBM with its recent acquisition of Artisan Design Group, Lowe's seeks to strengthen its position in the $250 billion Pro market. The deal is expected to close in Q4 2025, subject to regulatory approval, and will be financed through a mix of short- and long-term debt. The company anticipates the transaction to be accretive to adjusted diluted earnings per share in the first full year post-closure.

Lowe's secured $9.0 billion in bridge financing from Bank of America and Goldman Sachs, maintaining its credit rating outlook. The acquisition reflects a 13.4x adjusted EBITDA multiple, underscoring confidence in FBM’s growth trajectory, including 25% and 30% CAGR for revenue and EBITDA from 2019 to 2024. FBM’s leadership team will remain in place, emphasizing continuity in service delivery to Pro customers.

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