Lowe's Companies Inc. to Acquire Foundation Building Materials for $8.8 Billion

On August 20, 2025, Lowe's Companies, Inc. (NYSE: LOW) announced a definitive agreement to acquire Foundation Building Materials (FBM), a premier North American distributor of interior building products, for approximately $8.8 billion in cash. This strategic acquisition marks a significant step in Lowe's ongoing transformation and expansion of its professional (Pro) offerings to meet the growing demands of the construction market.

Founded in 2011 and headquartered in Santa Ana, California, FBM has rapidly evolved into a leading distributor of essential building products, including drywall, metal framing, ceiling systems, commercial doors, hardware, and insulation. With over 370 locations operating across the United States and Canada, FBM serves approximately 40,000 professional customers in both new construction and repair and remodel segments. The company reported a robust pro forma revenue of $6.5 billion and adjusted EBITDA of $635 million in 2024, reflecting a compound annual growth rate (CAGR) of 25% for revenue and 30% for adjusted EBITDA from 2019 to 2024.

Lowe's acquisition of FBM is expected to significantly enhance its Total Home strategy, particularly for Pro customers. The merger will expand Lowe's capabilities in several critical areas, including faster fulfillment, improved digital tools, and a robust trade credit platform. Additionally, it will create significant cross-selling opportunities between FBM and Lowe's existing offerings, such as those from the recently acquired Artisan Design Group (ADG).

Marvin R. Ellison, Lowe's chairman, president, and CEO, expressed enthusiasm about the acquisition, stating, "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."

Under the terms of the agreement, Lowe's will acquire FBM for $8.8 billion, which represents an adjusted EBITDA multiple of 13.4x. To finance this acquisition, Lowe's has secured $9 billion in fully committed bridge financing from Bank of America and Goldman Sachs. The financing strategy will involve a combination of short-term and long-term debt, with the intention of maintaining current credit ratings.

The transaction is anticipated to close in the fourth quarter of 2025, pending customary closing conditions and regulatory approvals. Importantly, Lowe's expects the acquisition to be accretive to adjusted diluted earnings per share in the first full year post-closing, excluding potential synergies.

Ruben Mendoza, president and CEO of FBM, will continue to lead the company following the acquisition. He remarked on the strategic partnership, stating, "Joining Lowe's is an exciting next step. Together with Lowe's complementary products and incredible brand, we'll offer a more comprehensive solution for Pro customers and accelerate growth." The existing leadership team at FBM will work closely with Lowe's to ensure seamless integration and continued service excellence for Pro customers.

Lowe's acquisition of Foundation Building Materials represents a bold and strategic investment in the home improvement and construction sectors. By enhancing its Pro offerings and expanding its distribution capabilities, Lowe's is positioning itself to capture a larger share of the $250 billion market for professional construction services. As the company prepares for this significant transition, investors and analysts will be closely monitoring the integration process and its impact on Lowe's overall performance in the coming years.