Lowe's to Acquire Foundation Building Materials for $8.8 bln.

• Lowe's to acquire Foundation Building Materials for $8.8 billion. • FBM is a leading North American distributor of interior building products. • FBM has over 370 locations in the US and Canada, serving 40,000 Pro customers. • In 2024, FBM generated $6.5 billion in revenue on a pro forma basis. • Acquisition to enhance Lowe's Pro offering and drive long-term sales growth. • Expected to increase Pro penetration and expand profit.

Lowe's Companies, Inc. (NYSE: LOW) has announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. The deal aims to enhance Lowe's offering to professional (Pro) customers and drive long-term sales growth [1].

FBM, a leading North American distributor of interior building products, operates over 370 locations in the United States and Canada, serving approximately 40,000 Pro customers. In 2024, on a pro forma basis, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA [1].

The acquisition is expected to accelerate Lowe's Total Home strategy by enhancing its offering to Pro customers through expanded capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities between FBM and Lowe's as well as the recently acquired Artisan Design Group [1].

Marvin R. Ellison, Lowe's chairman, president, and CEO, stated, "With this acquisition, we are advancing our multi-year transformation of the Pro offering. It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy" [1].

Ruben Mendoza, FBM's president and CEO, added, "Joining Lowe's is an exciting next step. Since 2011, we've built a leading position in drywall, ceiling systems, and metal framing, with proven success integrating acquisitions. Together with Lowe's complementary products and incredible brand, we'll offer a more comprehensive solution for Pro customers and accelerate growth" [1].

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval. Lowe's expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings [1].

References:
[1] https://corporate.lowes.com/newsroom/press-releases/lowes-announces-agreement-acquire-foundation-building-materials-leading-north-american-distributor-interior-building-products-08-20-25