Lowe’s Expands with Major $8.8B Acquisition

Source Credit : Portfolio Prints

Deal Overview

Lowe’s Companies, Inc. has entered into a definitive agreement to acquire Foundation Building Materials (FBM) in an all-cash transaction valued at approximately $8.8 billion—marking one of its largest acquisitions to date.

FBM is a leading distributor of interior building products—including drywall, insulation, metal framing, ceiling systems, commercial doors, and hardware—with a presence across 370+ locations in the U.S. and Canada, serving around 40,000 professional customers.

Strategic Rationale

This acquisition bolsters Lowe’s push into the professional contractor market, positioning the company more firmly in that segment of the $250 billion professional construction space.

Further, in April, Lowe’s acquired Artisan Design Group (ADG) for $1.3 billion, a purchase that complements the new deal by enhancing its interior design and installation services. Together, the FBM and ADG acquisitions create a more integrated “Total Home” solution for professional clients.

Financial Snapshot & Outlook

• Q2 2025 Performance: Lowe’s delivered strong results with adjusted earnings per share (EPS) of $4.33, beating estimates, and total revenue of $23.96 billion.


• Forward Guidance: In light of the acquisition, Lowe’s raised its full-year 2025 sales forecast to $84.5–$85.5 billion, up from the previous range of $83.5–$84.5 billion.

Financing & Integration

The acquisition will be funded through a combination of short- and long-term debt, bolstered by a $9.0 billion fully committed bridge financing line from Bank of America and Goldman Sachs.

Lowe’s expects the deal to close in Q4 2025, subject to customary regulatory approvals.

FBM’s leadership—led by CEO Ruben Mendoza—will remain in place post-acquisition, ensuring continuity in operations and customer relationships as Lowe’s integrates the business.

Competitive Landscape & Market Response

This acquisition comes amid a broader industry shift toward professional-focused expansion. Home Depot, a chief competitor, has been aggressive in this space—purchasing SRS Distribution in 2024 and GMS earlier this year (around $4.3 billion).

Market analysts see this move as necessary for Lowe’s to keep pace in the pro-builder segment:

"Pro is basically the new battleground for home improvement," observes one expert.

Investor sentiment has been positive—the announcement led to a 3% pre-market uptick, with shares rising further as earnings and outlook beat expectations.

What’s Next?

As Lowe’s integrates FBM and ADG into its broader ecosystem, key watchpoints include:

• Operational synergies and cross-selling potential across its expanded Pro services.


• Debt management and credit rating stability, given the substantial financing required.


• Regulatory clearance and seamless integration, with the closing expected in the fourth quarter.

In summary

Lowe’s $8.8B acquisition of Foundation Building Materials signals a decisive pivot toward professional builders, reinforcing its Total Home ambitions and escalating the competitive arms race in the home improvement retail sector.