Lowe’s Companies (NYSE:LOW) has agreed to acquire interior building products distributor Foundation Building Materials (FBM) for around $8.8 billion in cash.
Lowe’s expects to finance the deal through a combination of short-term and long-term debt and intends to maintain its current credit ratings.
The transaction, expected to close in the fourth quarter of 2025, is likely be accretive to adjusted diluted earnings per share in the first full year, post-closing, excluding synergies.
FBM has a network of over 370 locations in the U.S. and Canada serving 40,000 Pro customers. In 2024, the business generated around $6.5 billion in revenue and $635 million in adjusted EBITDA on a pro forma basis.
“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.”
LOW +0.25% premarket.
Source: Press Release