Lowe’s Companies Inc. has struck an $8.8 billion deal to acquire Foundation Building Materials, one of North America’s largest distributors of interior construction products, in a move aimed at accelerating the home improvement retailer’s push into the professional contractor market.
FBM, based in Santa Ana, Calif., operates more than 370 locations across the U.S. and Canada, supplying drywall, metal framing, ceiling systems, insulation, and commercial doors to about 40,000 Pro customers. The distributor generated $6.5 billion in revenue last year and $635 million in adjusted EBITDA, according to pro forma results.
Lowe’s said the deal will strengthen its “Total Home” strategy, which centers on capturing more of the $250 billion professional construction and remodeling segment through expanded products, faster fulfillment, improved credit programs, and digital tools.
“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” Marvin Ellison, Lowe’s chairman and CEO, said in a statement. “FBM’s scalable, multi-trade distribution platform and strong leadership will significantly enhance our Pro solutions.”
Ruben Mendoza, FBM’s president and CEO, will continue to lead the business after the acquisition closes.
The transaction, which Lowe’s will fund through a mix of short- and long-term debt, is expected to close in the fourth quarter of 2025, pending regulatory approvals. The company has lined up $9 billion in bridge financing from Bank of America and Goldman Sachs. Lowe’s expects the deal to be accretive to earnings in its first full year, excluding synergies.
The move follows Lowe’s 2024 purchase of Artisan Design Group, a flooring design and installation firm, as the retailer builds out a broader Pro-focused distribution platform.
Goldman Sachs and Centerview Partners advised Lowe’s, while RBC Capital Markets represented FBM.
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