Lowe’s Companies Inc. has completed its $8.8 billion acquisition of Foundation Building Materials, finalizing a deal that strengthens the retailer’s position in the professional construction market and marks a major step in its long-term “Total Home” growth strategy.
The acquisition, first announced in August, gives Lowe’s a much broader footprint in the $250 billion professional building market and extends its reach into key regions — including California, the Northeast, and the Midwest — where its contractor presence has been relatively limited.
Foundation Building Materials, known as FBM, is a leading North American distributor of drywall, metal framing, ceiling systems, insulation, and related products. The company operates more than 370 branches across the United States and Canada, supplying both commercial and residential contractors. FBM will retain its brand and leadership under founder and CEO Ruben Mendoza, whose management team brings more than 200 years of combined industry experience.
“Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large Pro customers within a $250 billion total addressable market,” said Marvin Ellison, Lowe’s chairman, president, and chief executive officer. “Together with our recent acquisition of Artisan Design Group, we’re creating a comprehensive interior solutions platform to better serve homebuilders and commercial contractors.”
Ellison said FBM’s scale and expertise will expand Lowe’s professional offerings with deeper product assortments, faster fulfillment, and improved digital tools. The integration also gives Lowe’s the opportunity to cross-sell materials across its professional divisions and leverage FBM’s distribution network to reach more high-volume construction projects.
“FBM has built a strong reputation for reliability and service,” Ellison added. “We’re excited to welcome their talented team and loyal customers to the Lowe’s family.”
Lowe’s chief financial Officer Brandon Sink said the transaction will be funded through a combination of short- and long-term debt and is expected to be accretive to earnings in its first full year, excluding synergies. FBM generated roughly $6.5 billion in revenue and $635 million in EBITDA in 2024, according to Lowe’s, and the company expects additional growth from operational efficiencies and cross-selling opportunities.
“FBM’s proven growth model, combined with Lowe’s merchandising and supply chain strengths, positions us to create meaningful long-term value,” Sink said.
The acquisition also expands Lowe’s technology capabilities. The company plans to integrate FBM’s AI-driven Blueprint Takeoff software — which calculates material quantities directly from digital construction plans — into its ProDesk platform, allowing contractors to create faster and more accurate estimates. FBM’s MyFBM mobile app, offering real-time pricing, ordering, and delivery tracking in both English and Spanish, will also be rolled out across Lowe’s professional network.
Industry analysts view the completed deal as a clear signal that Lowe’s is accelerating its shift from a primarily retail-focused chain toward a hybrid retail-distribution model. The combination of Lowe’s scale and FBM’s deep contractor relationships positions the company to compete more directly with Home Depot and other national building materials suppliers for professional market share.
Ellison said the acquisition comes at a time of growing demand for both home construction and large-scale renovation projects. “With an estimated 16 million new homes needed in the U.S. by 2033 and roughly $50 billion in deferred project demand, we see a robust pipeline for construction and remodeling ahead,” he said.
The FBM purchase follows Lowe’s earlier acquisition of Artisan Design Group, which expanded its interior finishes and installation services. Together, the two businesses give Lowe’s greater vertical integration — from distribution and logistics to on-site installation — and a stronger foundation to serve contractors across every stage of a project.
“This acquisition strengthens our competitive position, accelerates execution of our strategy, and creates lasting value for our customers and shareholders,” Sink said. “With FBM now part of Lowe’s, we’re ready to meet the evolving needs of professional builders and contractors across North America.”
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