Lowe's to acquire FBM in 8.8B deal

The retailer plans to acquire FBM in a cash deal valued at about 8.8 billion to boost pro offerings.

Home improvement retailer to acquire Foundation Building Materials in 8.8 billion deal

Lowe's has agreed to acquire Foundation Building Materials for approximately 8.8 billion in cash. FBM operates more than 370 locations across the United States and Canada and serves about 40,000 Pro customers in residential and commercial markets. In 2024, FBM reported pro forma revenue around 6.5 billion and adjusted EBITDA near 635 million, with strong growth since 2019. The deal will also connect FBM with Lowe's and Artisan Design Group to expand capabilities, fulfillment speed, digital tools, and cross-selling opportunities for professional builders.

The move fits a clear strategic aim to deepen Lowe's reach into the professional trades and strengthen its Total Home platform. By merging FBM’s dispersed distribution network with Lowe's retail footprint and ADG assets, the company aims to offer faster fulfillment, better trade credit, and more integrated solutions for Pro customers. The deal could reshape competition in the professional segment by raising the bar on service, pricing transparency, and financing options across a large market in construction and repair.

But there are risks. A large cash purchase funded by bridge financing adds leverage and earnings sensitivity to a complex integration. Regulatory review and execution hurdles could delay benefits or dilute expected synergies. The shift may also affect independent distributors and pricing dynamics in a fragmented market, making careful integration essential for long term value.

Highlights

The deal reshapes the pro landscape, but execution will determine whether the promised gains translate into lasting growth.