Lowe's to Acquire Foundation Building Materials for $8.8 Billion

Lowe's to Acquire Foundation Building Materials

In a landmark transaction, Lowe's Companies, Inc. is set to acquire Foundation Building Materials, Inc. (FBM) in an $8.8 billion deal. This significant acquisition marks a transformative step for Lowe's, a leading home improvement retailer, further strengthening its portfolio in the building products distribution sector. This transaction was officially noted by American Securities LLC and CD&R, which are currently the owners of FBM.

About Foundation Building Materials

FBM, headquartered in Santa Ana, California, is a premier distributor of a wide array of interior building products such as drywall, metal framing, ceiling systems, commercial doors, and hardware, among others. Since its inception in 2011, FBM has grown to become a major player in the market, operating over 370 locations across the United States and Canada, serving approximately 40,000 professional customers in both the residential and commercial construction sectors.
This remarkable achievement in business growth has been spearheaded by a combination of organic developments and strategic acquisitions, notably including Beacon Roofing Supply's interior products arm, Marjam Supply Company, Unified Door Hardware, and REW Materials. These acquisitions have significantly expanded FBM's product offerings and competitive edge in key North American markets.

FBM's analytical data reflects impressive growth metrics, boasting a 27% annual revenue increase and a 31% annual EBITDA growth under the management of American Securities and CD&R. In addition to its rapid expansion, FBM has prioritized launching a new e-commerce platform, boosting its digital services to cater more effectively to its customers.

Leadership Insights

Ruben Mendoza, CEO of FBM stated, "Working alongside American Securities and CD&R has been incredible. Their support has allowed us to accelerate growth while staying true to our core values." He expressed enthusiasm about the new opportunities that the partnership with Lowe’s will bring. He remarked on the company’s journey and accomplishments under the previous ownership, highlighting its industry relevance.

Kevin Penn, a Partner at American Securities, expressed pride in FBM's growth during their tenure: “We’ve partnered with a remarkable management team and their effort has resulted in substantial market transformations.” The collaboration between FBM and its stakeholders has not only achieved financial success but also cultivated a resilient, customer-centric business model that is well-prepared for future ventures.

Furthermore, John Stegeman, Operating Advisor to CDR Funds and FBM's Chairman, remarked on the company’s ability to unlock its potential, creating pathways for growth through strategic decisions and investments in organic initiatives.

Expectations from the Acquisition

The transaction is anticipated to finalize in the fourth quarter of 2025, contingent upon standard closing conditions and regulatory clearances. Financial advisory services were provided by RBC Capital Markets, while legal support was rendered by Weil, Gotshal & Manges LLP.

This acquisition signifies Lowe's commitment to strengthening its market position by integrating FBM’s exemplary customer service and operational excellence into their strategy. Observers in the industry are keenly watching this merger unfold and speculate its potential implications for future industry dynamics as Lowe's seeks to redefine its approach to building materials distribution.

In conclusion, the acquisition of FBM by Lowe's is poised to reshape the landscape of the building products distribution industry, setting the stage for enhanced efficiency, expanded product offerings, and superior customer service capabilities. As this deal materializes, industry players are eager to see how this new union transforms the market and continues to cater to the evolving needs of construction professionals across North America.