Lowe's Companies, Inc. has successfully completed its acquisition of Foundation Building Materials (FBM), a prominent building materials and construction products distribution company with over 370 locations across the United States and Canada. This acquisition is expected to provide Lowe's with significant growth opportunities, particularly in expanding its professional customer base and enhancing its market penetration.
The acquisition of FBM is anticipated to bolster Lowe's offering to professional customers by providing an expanded product assortment, faster fulfillment, improved digital tools, and a robust trade credit platform. This move is in line with Lowe's strategy to serve large pro customers within a $250 billion total addressable market.
With the completion of this acquisition, Lowe's is well-positioned to capitalize on the expected recovery in housing, with an estimated 16 million new homes needed in the U.S. by 2033. Additionally, the acquisition is aligned with Lowe's aim to drive more sustainable sales and profit expansion, ultimately delivering long-term shareholder value.
Furthermore, the press release highlights the continuity in leadership, as FBM will continue to be led by its founder, Ruben Mendoza, and its senior leadership team with over 200 years of combined industry experience. This continuity aims to ensure the seamless delivery of outstanding service for professional customers.
It's worth noting that Lowe's recently acquired Artisan Design Group (ADG), which, combined with the FBM acquisition, is expected to create a comprehensive interior solutions platform to better serve homebuilders.
As of fiscal year 2024, Lowe's reported total sales of more than $83 billion, operating over 1,700 home improvement stores and employing approximately 300,000 associates. This acquisition is a significant move for Lowe's as it looks to strengthen its position in the market and expand its offerings to professional customers. As a result of these announcements, the company's shares have moved -0.96% on the market, and are now trading at a price of $237.59. For the full picture, make sure to review LOWES COMPANIES INC's 8-K report.
