Lowe’s Companies, Inc. announced a definitive agreement to acquire Foundation Building Materials (“FBM”) for approximately $8.8 billion.
In 2024, on a pro forma basis, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA2. From 2019 to 2024, the company generated approximately 25% and 30% CAGR for revenue and adjusted EBITDA.
“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.”
FBM is expected to accelerate Lowe’s Total Home strategy. Lowe’s announces agreement to acquire FBM that will enhance 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. The company will create a premier platform to better serve the large Pro, by combining the acquisitions with Lowe’s existing offering, especially in planned spend.
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.”
Acquisition Terms and Financial Details
According to the terms of the Agreement, Lowe’s will acquire FBM for $8.8 billion in cash. This will reflect an adjusted EBITDA multiple of 13.4x2,3
Lowe’s announces agreement to acquire FBM that has secured $9.0 billion in a fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC.
FBM is a leading North American distributor of interior building products. The interior building products include drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products. This serves large residential and commercial professionals in both new construction and repair and remodel applications.
The company expects to finance the acquisition through a combination of short-term and long-term debt as it intends to maintain its current credit ratings. The transaction is expected to close in the fourth quarter of 2025. It is 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.
