Lowe's Acquires Foundation Building Materials for $8.8 Billion, Strengthening Residential Renovation Product Distribution

Lowe's to acquire Foundation Building Materials for $8.8 billion. Lowe's is the No. 2 retailer of residential renovation products worldwide, with a network of 1,746 stores in the US. The acquisition will expand Lowe's offerings in building materials, woodworking, and general plumbing products.

Lowe's Companies, Inc. (NYSE: LOW) has announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. The acquisition, expected to close in the fourth quarter of 2025, will significantly enhance Lowe's offerings in building materials, woodworking, and general plumbing products.

FBM, a leading North American distributor of interior building products, operates over 370 locations in the United States and Canada. It serves 40,000 Pro customers, generating approximately $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024. The acquisition reflects an adjusted EBITDA multiple of 13.4x [1].

The acquisition aligns with Lowe's Total Home strategy, aiming to serve the large Pro market within a $250 billion total addressable market. Marvin R. Ellison, Lowe's chairman, president, and CEO, stated, "This acquisition will accelerate our Total Home strategy and strengthen our Pro offering. FBM's scalable, multi-trade distribution platform and strong leadership will significantly enhance our capabilities."

Ruben Mendoza, FBM's president and CEO, added, "Joining Lowe's is an exciting next step. We've built a leading position in drywall, ceiling systems, and metal framing, and we're excited to offer a more comprehensive solution for Pro customers."

The transaction is expected to be accretive to adjusted diluted earnings per share in the first full year post-closing, excluding synergies. 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.

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