Lowe’s to Acquire Foundation Building Materials in $8.8 Billion Deal, Strengthening Pro Offerings and Driving Long-Term Growth
MOORESVILLE, N.C. – Aug. 20, 2025 – Lowe’s Companies, Inc. (NYSE: LOW) has announced a definitive agreement to acquire Foundation Building Materials (FBM), a leading North American distributor of interior building products, for approximately $8.8 billion in cash. The acquisition, expected to close in the fourth quarter of 2025, will significantly expand Lowe’s capabilities in serving professional contractors and builders while supporting its long-term Total Home strategy.
Founded in 2011 and headquartered in Santa Ana, California, FBM has grown rapidly into an industry leader. With more than 370 locations across the United States and Canada, the company serves 40,000 Pro customers in both residential and commercial construction. In 2024, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA, marking compound annual growth rates of 25% and 30% respectively since 2019.
By bringing FBM into the fold, Lowe’s expects to unlock significant cross-selling opportunities, strengthen digital and trade credit platforms, and better serve Pro customers with faster fulfillment and multi-trade solutions.
“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” said Marvin R. Ellison, Lowe’s chairman, president, and CEO. “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. FBM's scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We're excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”
FBM’s leadership team, including President and CEO Ruben Mendoza, will continue to lead the business under Lowe’s ownership. Mendoza highlighted the growth opportunities ahead:
“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.”
Financial Overview
Purchase Price
$8.8 billion in cash (reflecting an adjusted EBITDA multiple of 13.4x, net of expected tax benefits of ~$300 million).
Financing
$9.0 billion bridge financing secured from Bank of America and Goldman Sachs. Lowe’s plans to fund the acquisition with a mix of short- and long-term debt while maintaining its credit ratings.
Accretion
Expected to be accretive to adjusted diluted EPS in the first full year post-closing, excluding synergies.
Strategic Rationale
The acquisition positions Lowe’s as a stronger competitor in the $250 billion Pro planned spend market, combining FBM’s extensive trade-focused distribution network with Lowe’s retail footprint. Together with the recent acquisition of Artisan Design Group (ADG), Lowe’s will now have a comprehensive offering in drywall, ceilings, insulation, metal framing, commercial doors, and more, reinforcing its role as a one-stop partner for contractors.
Market Impact
Analysts expect the acquisition to not only deepen Lowe’s penetration among professional contractors but also to improve long-term revenue visibility through more predictable planned spending cycles in commercial and residential projects. The deal reflects Lowe’s continued pivot toward the Pro segment, which is expected to drive sustainable sales and profit growth.
“FBM’s proven distribution model, coupled with Lowe’s scale, creates a premier platform to serve Pro customers at every stage of the construction cycle,” industry experts noted, highlighting the synergies in logistics, customer service, and trade credit programs.
What’s Next
Pending regulatory approvals and customary closing conditions, the deal is anticipated to close in late 2025. Lowe’s will host a conference call at 9 a.m. ET today to discuss the acquisition alongside its Q2 2025 earnings results.