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Lowe's has confirmed an agreement to acquire Foundation Building Materials in a USD 8.8 billion deal, continuing its focus on professional builders and contractors. The distributor operates more than 370 outlets across North America and supplies around 40,000 pro customers. This follows Lowe's acquisition of Artisan Design Group earlier this year and reflects its broader "Total Home" strategy. With the new deal, Lowe's has raised its full-year sales outlook and reported stronger-than-expected quarterly earnings, signaling a deeper push into the professional construction segment.
Lowe's has entered into a definitive agreement to buy Foundation Building Materials for about USD 8.8 billion. The company stated that the deal is designed to expand its services for contractors, builders, and other professional clients. Subject to regulatory approval and standard closing conditions, the transaction is expected to complete by the end of this year. Advertisement
Foundation Building Materials, headquartered in California, distributes drywall, insulation, metal framing, ceiling systems, doors, and hardware. With more than 370 branches across the U.S. and Canada, it serves around 40,000 professional customers. In recent years, the distributor has reported strong growth under its current private-equity owners, with revenues increasing at about 27 % annually and EBITDA at 31 % per year, supported by both organic expansion and acquisitions.
This marks Lowe's second significant purchase in 2025. Earlier in the year, it acquired Artisan Design Group for nearly USD 1.33 billion, strengthening its presence in design and installation of interior finishes. Together, these acquisitions align with Lowe's "Total Home" strategy, which places a sharper emphasis on attracting professional builders while also serving individual homeowners.
Following the Foundation Building Materials announcement, Lowe's raised its full-year sales forecast to a range of USD 84.5 billion to USD 85.5 billion, compared with its previous guidance of USD 83.5 billion to USD 84.5 billion. The company also reported solid quarterly results, with adjusted earnings of USD 4.33 per share, revenue of nearly USD 24 billion, and comparable-store sales growth of 1.1 %. These figures exceeded analysts' expectations and highlighted stronger demand from both pro and DIY customers.
The move also intensifies competition with Home Depot, which has been expanding its professional contractor offerings through acquisitions such as GMS and SRS Distribution. Industry observers believe Lowe's latest step positions it more directly against its largest rival in the pro segment.
Lowe's plans to finance the acquisition with a mix of short-term and long-term debt, including USD 9 billion in bridge financing from a group of banks. The company has indicated that it intends to preserve its investment-grade credit profile. It also expects the deal to add to earnings within the first full year, excluding potential synergies.
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