U.S. wholesale distribution closed out 2025 with a flurry of high-value mergers and acquisitions that underscore accelerating consolidation across building products, office supplies, chemicals, and specialty energy sectors. The quarter’s most prominent transactions — highlighted by Lowe’s $8.8 billion acquisition of Foundation Building Materials, Atlas Holdings’ roughly $1 billion take-private of The ODP Corporation, and TopBuild Corp.’s $1 billion purchase of Specialty Products and Insulation — reflect strategic pushes by retailers, industry players and private equity to secure scale, deeper end-market access and enhanced service capabilities.
The fourth quarter capped a year marked by persistent interest-rate pressure, uneven demand in construction and manufacturing, and shifting customer expectations that are driving distributors to expand digital tools, trade credit programs and value-added services such as installation or fabrication. Despite these headwinds, buyers with ample balance-sheet capacity pressed ahead with portfolio-defining deals rather than waiting for clearer economic signals.
Lowe’s Pushes Upstream in Pro Market With $8.8 Billion Deal
The largest transaction of the quarter was Lowe’s Companies Inc.’s $8.8 billion acquisition of Foundation Building Materials (FBM), a Santa Ana, California–based distributor with more than 370 branches across the United States and Canada. FBM supplies interior building products — including drywall, metal framing, ceiling systems, insulation, and related materials — to 40,000 professional customers.
The deal completes Lowe’s previously announced agreement and gives the home improvement retailer significant reach into professional channels through a full-scale distribution network, trade credit infrastructure, and long-standing contractor relationships. FBM will continue to operate under its existing leadership team, led by founder and CEO Ruben Mendoza.
The acquisition dovetails with Lowe’s earlier 2025 purchase of Artisan Design Group, expanding the company’s interior surfaces distribution and installation capabilities. Together, the moves underline Chief Executive Marvin Ellison’s strategy to narrow the pro-market gap with rival Home Depot and position Lowe’s for growth in housing and commercial construction.
Atlas Takes Office Supply Giant Private
In office products and business supplies, Atlas Holdings completed its take-private acquisition of The ODP Corporation, the parent of Office Depot and OfficeMax, in an all-cash transaction valued at approximately $1 billion. Under the agreement, ODP shareholders received $28 per share, a 34% premium to the company’s closing price prior to the deal announcement. Upon closing, ODP’s stock ceased trading on the NASDAQ, and the company became privately held.
Atlas appointed Craig Gunckel as chief executive officer upon closing, succeeding previous leadership, and now oversees more than 16,000 employees across ODP’s retail and B2B distribution network.
The move comes as legacy office retail continues to contract under digital competition and shifting procurement toward online and contract-based fulfillment. Atlas’s acquisition is widely seen as a bet on ODP’s B2B pivot, giving the company flexibility to restructure outside the quarterly reporting pressures of public markets.
TopBuild Expands Insulation Presence With $1 Billion SPI Acquisition
In building products, TopBuild Corp. closed an all-cash acquisition of Specialty Products and Insulation (SPI) for $1 billion. SPI, a mechanical-insulation distributor and fabricator, generated approximately $700 million in revenue and about $75 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ended June 30, 2025, and operates 90 branches with about 1,000 employees.
TopBuild said the deal strengthens its position in commercial and industrial end markets, where energy-efficiency mandates and plant-level maintenance needs are driving demand for specialized insulation systems. The acquisition is expected to generate annual cost synergies of $35 million to $40 million and be immediately accretive to earnings per share.
Private Equity Deepens Its Hold in Chemicals Distribution
Private equity activity continued in the chemicals sector, where Lindsay Goldberg agreed to acquire EMCO Chemical Distributors, a Wisconsin-based industrial chemical distributor. Financial terms were not disclosed. EMCO, founded in 1971, employs more than 500 people and serves over 4,000 customers with custom blending, packaging, and distribution services through multiple facilities. Upon closing, industry veteran Frank Bergonzi was appointed executive chairman, succeeding founder Edward Polen, who planned to retire.
The transaction reflects broader private equity interest in fragmented, founder-led chemical distribution platforms that combine technical capabilities with growth through bolt-on acquisitions and advanced logistics.
Specialty Energy and Niche Rollups Gain Traction
Smaller headline deals also pointed to continued consolidation in fragmented niche markets. Revelar Capital acquired Lettermen’s Energy, a multi-regional propane distributor operating in 20 states. While terms were not disclosed, the deal highlights roll-up strategies in energy distribution sectors where recurring residential demand and regulatory compliance create opportunities for centralized platforms.
Lettermen’s, founded in 2021 with backing from CID Capital, expanded rapidly through acquisitions and now enters a new growth phase under Revelar — mirroring roll-up trends in HVAC distribution, industrial gases, and lubricants, where private equity is increasingly building regional scale with an eye toward national networks.
A Market Defined by Scale, Specialization and Strategic Positioning
Across the quarter’s largest transactions, a clear dividing line emerged:
- Scale buyers such as Lowe’s and Atlas are pursuing national platforms to control supply chain reach, pricing programs, and digital ordering.
- Strategic specialists like TopBuild acquire technical capability, fabrication services, and non-cyclical revenue streams.
- Private equity continues targeting fragmented end markets with regulatory complexity and consolidation opportunities.
As 2026 begins, industry analysts say the pipeline remains active but note that high interest rates and uneven construction demand could delay mid-market closings. Even so, buyers with balance-sheet strength appear willing to deploy capital where acquisitions accelerate strategic repositioning rather than merely adding volume.
For distributors, the takeaway from the quarter is less about individual deals than about direction: companies reshaping their portfolios toward professional customers, value-added services and hybrid digital ordering are leading the industry’s strategic evolution.
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