Lowe’s has agreed to acquire Foundation Building Materials (FBM) for $8.8 billion in cash, strengthening its presence in the professional builder segment and deepening its push into a $250 billion addressable market for planned Pro spending.
FBM, a Santa Ana, California-based distributor, operates over 370 locations in the U.S. and Canada and serves more than 40,000 professional customers with products including drywall, insulation, metal framing, and ceiling systems. The company generated $6.5 billion in pro-forma revenue and $635 million in adjusted EBITDA in 2024. The transaction values FBM at a 13.4x adjusted EBITDA multiple.
The deal is expected to enhance Lowe’s “Total Home” strategy by improving fulfillment speed, expanding trade credit capabilities, advancing digital tools, and offering significant cross-selling opportunities, including with the recently acquired Artisan Design Group. Ruben Mendoza, FBM's CEO, and his senior leadership team will remain in place post-acquisition.
The acquisition is set to close in the fourth quarter of 2025, subject to regulatory approval. It will be funded through a mix of short- and long-term debt, backed by $9 billion in bridge financing from Bank of America and Goldman Sachs. Lowe’s expects the deal to be accretive to adjusted diluted earnings per share in the first full year after closing, excluding synergies.
FBM is currently owned by American Securities and Clayton Dubilier & Rice, which acquired their stakes in 2021 and early 2024, respectively. The transaction continues a wave of M&A activity in the sector, as DIY retailers seek growth beyond a slowing consumer base.
Lowe’s reported second-quarter revenue of $24 billion, up from $23.6 billion a year earlier, with same-store sales rising 1.1%. Net income reached $2.4 billion, or $4.27 per share on a GAAP basis. Adjusted earnings came in at $4.33 per share, beating Wall Street estimates. Lowe’s raised its full-year revenue forecast to between $84.5 billion and $85.5 billion and now expects adjusted earnings of $12.20–$12.45 per share, compared with GAAP guidance of $12.10–$12.35.
The acquisition follows Home Depot’s announcement last week of its $4.3 billion purchase of GMS, reinforcing the sector’s shift toward professional customers. Home Depot’s Pro business remains larger, but Lowe’s CEO Marvin Ellison said the FBM acquisition “advances our multi-year transformation of the Pro offering” and positions the company to better serve the structured, planned spending typical of larger professional customers.
