Lowe's Companies, Inc. has announced its agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. FBM, a leading North American distributor of interior building products, recorded approximately $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024. This represents a significant growth from 2019, with a 25% increase in revenue and a 30% increase in adjusted EBITDA.
The acquisition is expected to enhance Lowe's offering to professional customers through expanded capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities. It is anticipated that the transaction will be accretive to adjusted diluted earnings per share in the first full year post-closing, excluding synergies.
To finance the acquisition, Lowe's secured $9.0 billion in fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC. The company plans to finance the acquisition through a combination of short-term and long-term debt.
The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval. Ruben Mendoza, FBM's president and CEO, and the senior leadership team will continue to lead FBM and collaborate closely with Lowe's to provide outstanding service for their professional customers. Following these announcements, the company's shares moved 0.93%, and are now trading at a price of $258.745. If you want to know more, read the company's complete 8-K report here.
