News Summary
Lowe’s Companies Inc. has acquired Foundation Building Materials Inc. for $8.8 billion, enhancing its offerings to professional customers in the building products market. With a strong focus on the Pro segment, this acquisition will support Lowe’s expansion into a $250 billion market. FBM, generating $6.5 billion in revenue and operating over 370 locations, aligns with Lowe’s strategic growth plans. Ruben Mendoza will continue to lead FBM post-acquisition, ensuring operational continuity as the company looks to open more stores in the coming years.
Mooresville, North Carolina – Lowe’s Companies Inc. has announced its acquisition of Foundation Building Materials Inc. (FBM) for $8.8 billion. This strategic move aims to enhance Lowe’s offerings to its professional (“Pro”) customer base, which consists of individuals and businesses requiring substantial residential and commercial building materials.
Foundation Building Materials, headquartered in Santa Ana, California, specializes in essential construction products such as ceiling systems, commercial doors, drywall, and metal framing. This acquisition is anticipated to support Lowe’s expansion into a $250 billion market for Pro customers who demand high-quality products tailored to large-scale operations.
Lowe’s Chairman and CEO Marvin Ellison has emphasized that the acquisition will significantly broaden the company’s Pro offerings, catering to the increasing needs of professional contractors and builders. With FBM generating approximately $6.5 billion in revenue in 2024 and employing around 5,000 people, its robust presence aligns with Lowe’s growth strategy.
The transaction is expected to close in the fourth quarter of this year, pending the necessary regulatory approvals. To finance the purchase, Lowe’s has secured $9 billion in bridge financing from Bank of America and Goldman Sachs, positioning the company to strengthen its portfolio of services.
FBM has a strong track record in the industry, having successfully completed over 60 acquisitions to drive growth under private equity ownership by American Securities, achieving an annual revenue growth rate of 27%. The company operates more than 370 locations across the United States and Canada, catering to over 40,000 professional customers.
Ruben Mendoza, the founder and CEO of FBM, will continue to lead the company after the acquisition, ensuring continuity in operations and strategic direction. This leadership transition is expected to facilitate a smooth integration process and maintain the momentum of FBM’s existing initiatives.
Lowe’s acquisition of FBM follows its recent purchase of Artisan Design Group for over $1.3 billion, signaling a continued commitment to enhancing services for professional customers. This pattern of investment illustrates Lowe’s strategic focus on capturing a larger share of the Pro market, which is integral to the company’s overall growth plan.
Looking forward, Lowe’s has outlined its intention to open 10 to 15 new stores annually over the next five years as part of its expansion strategy. Currently, Lowe’s operates over 1,700 stores and processes roughly 16 million customer transactions each week, indicating a significant market presence in the home improvement industry.
Founded in 1946, Lowe’s has evolved into a Fortune 100 company and reported approximately $83 billion in sales for the fiscal year 2024. The acquisition of FBM is regarded as a pivotal step in the company’s ongoing transformation towards providing enhanced services and specialized products to professional contractors and builders, positioning them as a substantial player in the market.
As the deal approaches closure, industry experts will be observing the ramifications of this acquisition, especially its potential impact on the competitive landscape of construction material suppliers and home improvement retailers.
Deeper Dive: News & Info About This Topic
HERE Resources
Lowe’s to Acquire Foundation Building Materials for $8.8 Billion
Additional Resources
- Orange County Business Journal
- PR Newswire
- Wall Street Journal
- Wikipedia: Lowe’s
- Google Search: Lowe’s acquisition of Foundation Building Materials
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
