Lowe’s, the US home improvement retailer, has agreed to buy interior building products distributor Foundation Building Materials (FBM) for approximately $8.8 billion. The deal aims to bolster Lowe’s presence in the professional builder market, which serves contractors and builders.
The acquisition is part of a trend among home improvement retailers, including Home Depot, to expand their offerings to cater to the growing demand from professional contractors. FBM supplies construction products such as drywall, metal framing, ceilings, doors, and hardware to around 40,000 professional customers through over 370 locations in the US and Canada.
Lowe’s CEO Marvin Ellison stated that FBM’s distribution platform and leadership will enhance Lowe’s Pro offering. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals.
The acquisition raises Lowe’s annual sales forecast and beats second-quarter profit estimates. Shares rose by 2% following the announcement. With this deal, Lowe’s and Home Depot are targeting a $250 billion professional builder market, aiming to boost their business in the sector.
Lowe’s has also recently acquired Artisan Design for $1.33 billion, while Home Depot purchased GMS for about $4.3 billion. Analysts see the trend of acquisition as a response to weak demand in the do-it-yourself category and increasing competition among home improvement retailers.
Source: https://www.reuters.com/legal/transactional/lowes-buy-foundation-building-materials-88-billion-boost-contractor-business-2025-08-20