Lowe’s Companies Inc. yesterday announced plans to acquire Foundation Building Materials (FBM), a premier North American distributor of interior building products, in a move aimed at accelerating growth in its professional contractor business.
The $8.8 billion deal, expected to close later this year pending customary approvals, will strengthen Lowe’s professional contractor offerings, expand its geographic footprint, and integrate advanced digital capabilities to serve large-scale construction projects.
“Today, we announced the acquisition of FBM, a premier distributor of drywall, metal framing, ceiling systems, insulation, commercial doors, and hardware, along with other complementary products,” Lowe’s CEO Marvin Ellison said during the company’s Q2 earnings call. “This acquisition represents a transformational move in advancing our total home strategy and enhancing long-term shareholder value. With FBM, we are strategically expanding our pro offering to serve larger contractors, especially those with significant plan spend.”
Ellison emphasized that the deal positions Lowe’s to capture more of the $250 billion professional market while continuing to drive growth among DIY and smaller pro customers. “The acquisition strengthens our portfolio, diversifies revenue streams, and allows us to capture a larger portion of pro sales—all of which is expected to deliver significant long-term value to our shareholders,” he added.
FBM’s Track Record and Strategic Fit
Founded in 2011, FBM has grown into a diversified distribution platform with more than 370 branches across the U.S. and Canada, integrating over 60 acquisitions and launching 50 greenfield locations. “FBM has a loyal customer base across commercial and residential markets, including hospitals, data centers, and office buildings, which creates stability and insulates the company from the ups and downs of the housing cycle,” Ellison said.
He highlighted FBM’s leadership team, which has an average tenure of a decade, as a key factor in the company’s success. “Founder and CEO Ruben Mendoza started with a single branch fourteen years ago and built an industry-leading platform. Their team brings a disciplined approach to execution and a focus on continuous improvement while always putting the customer first,” Ellison noted.
FBM’s presence in California, the Northeast, and key Midwest metro areas complements Lowe’s existing store network. “These are regions where we have historically had less density,” Ellison said. “This acquisition gives us the ability to expand our pro footprint in densely populated urban areas.”
Financial and Operational Implications
Brandon Sink, Lowe’s chief financial officer (CFO), provided a financial snapshot of FBM. “In 2024, FBM generated approximately $6.5 billion in revenue and $635 million in EBITDA. We expect the business to grow organically and through expansion, while delivering additional revenue and cost synergies from cross-selling and operational optimization,” he said.
The acquisition is expected to be accretive to adjusted diluted earnings per share in the first full year after closing, excluding synergies, and will be funded through a combination of short- and long-term debt.
Lowe’s recent earnings reflect the resilience of its core business. For Q2 2025, the company reported $24 billion in sales, with comparable sales up 1.1%, driven by both pro and DIY growth. “Our persistent focus on productivity drove better-than-expected operating performance,” Ellison said, citing ongoing perpetual productivity improvement (PPI) initiatives that aim to optimize inventory, labor, and operational efficiency.
Bill Boltz, Lowe’s president of merchandising, highlighted performance across key categories. “We drove positive comps across building materials, rough plumbing, lumber, drywall, plumbing repair, water heaters, roofing, siding, and composite decking,” he said. Boltz also emphasized the addition of new pro-preferred brands such as DowTile, Klein Tools, Hubble, and Wallboard Tools, with DowTile offering direct-to-job-site delivery to ensure materials arrive on time for commercial projects.
Technology integration is another focus. Chief operating officer Joe McFarland detailed Lowe’s AI-powered MyLo Companion app, which assists associates in recommending materials and tools across departments. “The app is helping new associates build confidence early while enabling experienced associates to expand knowledge. Adoption has already surpassed our targets,” he said. McFarland also highlighted PPI-driven improvements, including streamlined freight flow using smarter truck organization, improved labeling, and redesigned carts, which reduce steps and enhance payroll productivity.
Digital and AI Capabilities from FBM
Lowe’s plans to integrate FBM’s AI-driven Blueprint Takeoff technology, which extracts material quantities and measurements from digital construction plans, to enhance estimating for large projects. “This will significantly accelerate the speed and accuracy of estimating for larger projects,” Ellison said. FBM’s MyFBM mobile app, offering real-time pricing, ordering, and delivery tracking in English and Spanish, will also be rolled out across Lowe’s ProDesk network.
Sink noted the opportunity for cross-selling: “FBM has a broader product offering in core categories like drywall, ceilings, metal framing, and insulation, while Lowe’s brings complementary categories such as tools, safety equipment, and fasteners. We see meaningful opportunities to drive revenue growth and enhance attachment rates.”
Strategic Outlook
The acquisition builds on Lowe’s total home strategy, which includes the earlier Artisan Design Group (ADG) purchase. “Operating both FBM and ADG under one umbrella allows us to offer large pro customers a full complement of interior finishes and services—from drywall to ceiling systems, insulation to doors, flooring, cabinets, and countertops,” Ellison said.
The pro market remains healthy, supported by deferred projects and new home construction needs. “Industry analysts estimate roughly $50 billion of deferred project demand,” Ellison said. “At the same time, an estimated 18 million new homes are needed by 2033. Together, these trends point to a robust pipeline of demand for home improvement and new construction.”
Pro customers are also reporting strong near-term stability. “Over 75% of the pros stated they were confident in their job prospects, consistent with past quarters,” Ellison said. “The only concern they reported was rising labor costs, reflecting a growing shortage of skilled trades.”
With FBM, Lowe’s expects to accelerate its multiyear strategy to transform its professional offering, increase pro penetration, and balance DIY and pro revenue streams for sustainable long-term growth. “This acquisition strengthens our competitive position, accelerates execution of our long-term strategy, and creates meaningful, lasting value for our shareholders,” Sink said.
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