Lowe’s Companies, Inc. has announced a definitive agreement to acquire Foundation Building Materials (FBM), a North American distributor of interior building products, for approximately $8.8 billion.
FBM distributes drywall, metal framing, ceiling systems, commercial doors and hardware, insulation, and related products to residential and commercial professionals in new construction as well as repair and remodel sectors. The company operates over 370 locations across the United States and Canada and serves about 40,000 professional customers. In 2024, FBM reported pro forma revenue of around $6.5 billion and adjusted EBITDA of $635 million.
The acquisition is expected to support Lowe’s Total Home strategy by expanding its offerings for professional customers through increased capabilities such as faster fulfillment and improved digital tools. There are also opportunities for cross-selling between FBM, Lowe’s existing business, and the recently acquired Artisan Design Group.
“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” said Marvin R. Ellison, Lowe’s chairman, president, and CEO. “It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy. FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We’re excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”
Ruben Mendoza, president and CEO of FBM stated: “Joining Lowe’s is an exciting next step. Since 2011, we’ve built a leading position in drywall, ceiling systems, and metal framing, with proven success integrating acquisitions. Together with Lowe’s complementary products and incredible brand, we’ll offer a more comprehensive solution for Pro customers and accelerate growth.”
The senior leadership team at FBM will remain in place following the transaction.
Lowe’s will pay $8.8 billion in cash for FBM under terms that reflect an adjusted EBITDA multiple of 13.4x after accounting for tax benefits from the deal structure. The company has secured $9 billion in bridge financing from Bank of America N.A., and Goldman Sachs & Co LLC., with plans to use both short-term and long-term debt while maintaining current credit ratings.
The transaction is expected to close in the fourth quarter of 2025 pending regulatory approval and other customary conditions.
Lowe’s expects the acquisition will increase adjusted diluted earnings per share during the first full year after closing (excluding synergies).
A conference call discussing second quarter earnings along with details about this acquisition was scheduled by Lowe’s at 9 a.m. Eastern time today; further information can be found on their Investor Relations website at ir.lowes.com.
Goldman Sachs & Co LLC., Centerview Partners LLC., Freshfields LLP advised Lowe’s on financial matters; RBC Capital Markets along with Weil Gotshal & Manges LLP advised FBM.
Lowe’s operates over 1,700 stores across North America serving millions weekly customers according to its latest annual report.
