Lowe’s Announces Agreement to Acquire Foundation Building Materials, a Leading North American Distributor of Interior Building Products

Enhances offering for Pro customers

Increases Pro Penetration¹

Positions Company for Long-Term Sustainable Sales Growth and Profit Expansion

Lowe’s Companies, Inc. (“Lowe’s” or the “Company”) announced it has entered into a definitive agreement (the “Agreement”) to acquire Foundation Building Materials (“FBM”) for approximately $8.8 billion.

FBM is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. Since 2011, FBM has grown organically and inorganically to become an industry leader, with a network of over 370 locations in the United States and Canada serving 40,000 Pro customers. In 2024, on a pro forma basis, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA². It generated approximately 25% and 30% CAGR for revenue and adjusted EBITDA, respectively, from 2019 to 2024.

FBM is expected to accelerate Lowe’s Total Home strategy by enhancing its offering to Pro customers through expanded capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities between FBM and Lowe’s as well as the recently acquired Artisan Design Group. By combining these acquisitions with Lowe’s existing offering, the Company will create a premier platform to better serve the large Pro, especially in planned spend.

“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, FBM’s president and CEO, added, “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.”

Ruben Mendoza and the senior leadership team will continue to lead FBM. The FBM team will collaborate closely with Lowe’s to continue to provide outstanding service for their Pro customers.

Financial Overview

Under the terms of the Agreement, Lowe’s will acquire FBM for $8.8 billion in cash, which reflects an adjusted EBITDA multiple of 13.4x^2,3.

The Company has secured $9.0 billion in a fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC.

Lowe’s expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval.

The transaction is expected to be accretive to adjusted diluted earnings per share in the first full year, post-closing, excluding synergies.

About Lowe’s

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 17 million customer transactions a week in the U.S. With total fiscal year 2022 sales of over $97 billion, approximately $92 billion of sales were generated in the U.S., where Lowe’s operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.

Source: Lowe’s Companies, Inc.