Lowe’s acquires FBM for $8.8 billion to boost contractor business
Lowe’s announced Wednesday that it has agreed to acquire Foundation Building Materials (FBM), a leading distributor of interior building products, in a deal valued at nearly $8.8 billion. The move marks a major step in the home improvement retailer’s strategy to expand its presence in the professional contractor and builder market.
Shares of Lowe’s climbed 3% in premarket trading after the company also raised its annual sales outlook and reported stronger-than-expected second-quarter results. The retailer now expects full-year revenue in the range of $84.5 billion to $85.5 billion, up from its earlier forecast of $83.5 billion to $84.5 billion.
The acquisition of FBM follows Lowe’s $1.33 billion purchase of Artisan Design Group (ADG) in April, underscoring its aggressive expansion into the $250 billion professional building market. Rival Home Depot is pursuing a similar strategy, announcing in June that it would buy specialty building products distributor GMS for about $4.3 billion.
California-based FBM supplies drywall, metal framing, ceilings, doors, and related hardware to approximately 40,000 professional customers through more than 370 locations across the U.S. and Canada.
“FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering,” Lowe’s CEO Marvin Ellison said in a statement.
The professional segment has become a priority for both Lowe’s and Home Depot as do-it-yourself (DIY) demand has softened. DIY sales still account for roughly 70% of Lowe’s annual revenue, but tapping into the contractor and builder market offers a pathway for growth.
Lowe’s reported adjusted earnings of $4.33 per share for the second quarter, topping analyst estimates of $4.24, according to LSEG data.
The FBM deal will be financed through a mix of short-term and long-term debt and is expected to close in the fourth quarter of 2025, pending regulatory approvals.
