Lowe\u2019s Companies Inc. has completed its $8.8 billion acquisition of Foundation Building Materials, finalizing a deal that strengthens the retailer\u2019s position in the professional construction market and marks a major step in its long-term \u201cTotal Home\u201d growth strategy.<\/p>\n
The acquisition, first announced in August, gives Lowe\u2019s a much broader footprint in the $250 billion professional building market and extends its reach into key regions \u2014 including California, the Northeast, and the Midwest \u2014 where its contractor presence has been relatively limited.<\/p>\n
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.<\/p>\n
\u201cCompleting 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,\u201d said Marvin Ellison, Lowe\u2019s chairman, president, and chief executive officer. \u201cTogether with our recent acquisition of Artisan Design Group, we\u2019re creating a comprehensive interior solutions platform to better serve homebuilders and commercial contractors.\u201d<\/p>\n
Ellison said FBM\u2019s scale and expertise will expand Lowe\u2019s professional offerings with deeper product assortments, faster fulfillment, and improved digital tools. The integration also gives Lowe\u2019s the opportunity to cross-sell materials across its professional divisions and leverage FBM\u2019s distribution network to reach more high-volume construction projects.<\/p>\n
\u201cFBM has built a strong reputation for reliability and service,\u201d Ellison added. \u201cWe\u2019re excited to welcome their talented team and loyal customers to the Lowe\u2019s family.\u201d<\/p>\n
Lowe\u2019s 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\u2019s, and the company expects additional growth from operational efficiencies and cross-selling opportunities.<\/p>\n
\u201cFBM\u2019s proven growth model, combined with Lowe\u2019s merchandising and supply chain strengths, positions us to create meaningful long-term value,\u201d Sink said.<\/p>\n
The acquisition also expands Lowe\u2019s technology capabilities. The company plans to integrate FBM\u2019s AI-driven Blueprint Takeoff software \u2014 which calculates material quantities directly from digital construction plans \u2014 into its ProDesk platform, allowing contractors to create faster and more accurate estimates. FBM\u2019s MyFBM mobile app, offering real-time pricing, ordering, and delivery tracking in both English and Spanish, will also be rolled out across Lowe\u2019s professional network.<\/p>\n
Industry analysts view the completed deal as a clear signal that Lowe\u2019s is accelerating its shift from a primarily retail-focused chain toward a hybrid retail-distribution model. The combination of Lowe\u2019s scale and FBM\u2019s deep contractor relationships positions the company to compete more directly with Home Depot and other national building materials suppliers for professional market share.<\/p>\n
Ellison said the acquisition comes at a time of growing demand for both home construction and large-scale renovation projects. \u201cWith 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,\u201d he said.<\/p>\n
The FBM purchase follows Lowe\u2019s earlier acquisition of Artisan Design Group, which expanded its interior finishes and installation services. Together, the two businesses give Lowe\u2019s greater vertical integration \u2014 from distribution and logistics to on-site installation \u2014 and a stronger foundation to serve contractors across every stage of a project.<\/p>\n
\u201cThis acquisition strengthens our competitive position, accelerates execution of our strategy, and creates lasting value for our customers and shareholders,\u201d Sink said. \u201cWith FBM now part of Lowe\u2019s, we\u2019re ready to meet the evolving needs of professional builders and contractors across North America.\u201d<\/p>\n