Lowe’s Companies, Inc. has officially completed its $8.8 billion acquisition of Foundation Building Materials, Inc. (FBM), marking one of the largest building products distribution deals in recent years. The transaction was finalized by previous owners American Securities LLC and Clayton, Dubilier & Rice (CD&R), who helped scale the company following its 2021 acquisition.
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FBM, founded in 2011 and headquartered in Santa Ana, California, is a leading North American distributor of drywall, metal framing, insulation, ceiling systems, commercial doors, hardware and other complementary interior building materials. With more than 370 branches across the U.S. and Canada, the company supplies over 40,000 professional contractors in both new construction and renovation markets.
By joining Lowe’s expanding Total Home strategy, FBM will give the retail giant an even stronger foothold with professional contractors — a segment Lowe’s has been aggressively targeting.
Kevin Penn, Partner at American Securities, praised the partnership that led to the company’s rapid growth. "We want to thank Ruben Mendoza and the entire Foundation Building Materials team for their exceptional partnership over the last four and a half years, and we are excited to see the company enter its next chapter under Lowe's ownership."
Tyler Young, Principal at CD&R, echoed those sentiments, emphasizing FBM’s strong positioning moving forward. "We are proud to have supported Ruben Mendoza and the FBM team as they set the foundation for accelerated organic growth and strengthened the business," he said. "We believe FBM will be an outstanding platform in partnership with Lowe's to serve pro customers and build on long-standing supplier relationships."
Under American Securities and CD&R’s ownership, FBM saw significant expansion, averaging 27% annual revenue growth and 31% annual EBITDA growth. The acquisition strengthens Lowe’s ability to directly reach commercial builders and trade professionals with bulk distribution services that go far beyond typical retail offerings.
With the deal now closed, industry analysts say Lowe’s is positioning itself not just as a home improvement retailer, but as a full-scale building materials powerhouse — directly challenging distributors such as ABC Supply and Builders FirstSource.
Further integration plans between Lowe’s and FBM are expected to be announced in the coming months.
Originally reported by American Securities LLC in PR News Wire.
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