Lowe’s to acquire products distributor in $9B deal to boost pro customer reach
Lowe’s announced Wednesday it has agreed to acquire Foundation Building Materials for $8.8 billion. The company also detailed its plans for further expansion with a wave of new stores debuting over the next few years.
The FBM deal acquisition will expand the Mooresville-based home improvement chain’s reach among its professional customers, Lowe’s said. FBM, based in Santa Ana, California, is a distributor of interior building products with over 370 locations across the U.S. and Canada.
“With this acquisition, we are advancing our multi-year transformation of the pro offering,” Lowe’s CEO Marvin Ellison said in Wednesday’s statement. “We’re excited to welcome the FBM team and strengthen our solutions for our growing pro customers.”
In 2024, FBM generated about $6.5 billion in revenue with annual growth rate of 25% since 2019, Lowe’s said. The company serves more than 40,000 pro customers.
Lowe’s has secured $9 billion in bridge financing from Bank of America and Goldman Sachs, and plans to fund the acquisition through a mix of short- and long-term debt. The deal is expected to close in the fourth quarter of the year, pending regulatory approvals.
The move comes four months after Lowe’s announced it would acquire Artisan Design Group for over $1.3 billion.
ADG will also expand Lowe’s pro service with a new distribution channel. ADG is a design, distribution and installation service provider for interior surface finishes, including flooring, cabinets and countertops for homebuilders and property managers.
The ADG acquisition closed in June, Ellison said.
More about FBM
FBM serves large residential and commercial professionals, Ellison said, opening Lowe’s to a $250 billion market that “we truly don’t have total access to today.
“This acquisition represents a transformational move when it comes to advancing our Total Home Strategy,” Ellison said during the company’s second-quarter earnings call. “This acquisition unlocks our ability to serve the larger pro.”
FBM’s commercial customer business, including hospitals, data centers and office buildings. Founded in 2011, FBM is owned by private equity firms American Securities and CD&R, according to the company.
Over the past 18 months, FBM has established new avenues for growth through strategic acquisitions and organic growth initiatives, CD&R Principal Tyler Young said. That includes acquisitions of Beacon Roofing Supply’s interior products business, Marjam Supply Co., Unified Door & Hardware and REW Materials.
“One of the most compelling aspects of the FBM acquisition is a strategic presence in key geographies such as California, the Northeast and the Midwest regions where we currently have less of a presence,” Ellison said. “This provides us with significant growth opportunities to expand our pro footprint and capture sales in these areas of dense population.”
FBM has 5,000 employees, according to the company’s website.
Lowe’s expanding with more stores
Along with the acquistions, Lowe’s is adding stores with its latest designs and technology enhancements.
Lowe’s opened three stores in the second quarter in key growth markets, Joe McFarland, Lowe’s executive vice president of stores, said during the earnings call. The stores debuted in North Fort Worth and Georgetown, both in Texas; and Maricopa, Arizona. Another store will open this week in Braselton, Georgia.
New store growth is part of Lowe’s capital allocation and growth strategy,where the company is aiming to open 10 to 15 new stores each year for the next five years, Ellison said during a roundtable discussion with Charlotte reporters following the earnings call.
With population shifts since the pandemic, areas that couldn’t previously support a Lowe’s store have provided new opportunities. “Since I’ve been here, I don’t think we opened 10 stores,” Ellison said. “So it’s a nice pivot point for us.”
Lowe’s is investing about $2.5 billion in the business and opening new stores, Lowe’s Chief Financial Officer Brandon Sink said during the call.
Lowe’s 2Q earnings report
Lowe’s reported net earnings of $2.4 billion for the quarter ending Aug. 1, unchanged from the same period last year.
Total sales for the quarter were $24 billion, compared to $23.6 billion in the prior-year’s second quarter. Comparable sales for the quarter rose 1.1%, driven by improved weather, and growth in pro, online and appliance sales, Sink said.
As of Aug. 1, Lowe’s operates over 1,753 stores. Lowe’s employs about 300,000 people, mostly hourly.
Lowe’s has about 11,000 employees in the Charlotte region, including 5,000 corporate workers.
This story was originally published August 20, 2025 at 9:04 AM.
