News Summary
Lowe’s Companies Inc. has announced its acquisition of Foundation Building Materials Inc. for $8.8 billion. This move aims to enhance its offerings to professional customers in both residential and commercial sectors. The acquisition is part of Lowe’s Total Home strategy and is expected to boost their Pro customer base while creating long-term value for shareholders. Additionally, Lowe’s plans to acquire Artisan Design Group for over $1.3 billion, further expanding its market reach despite current economic pressures.
Santa Ana, California – Lowe’s Companies Inc. has announced its definitive agreement to acquire Foundation Building Materials Inc. for $8.8 billion, a move aimed at bolstering its offerings to professional customers in both residential and commercial sectors. The news of this acquisition was disclosed during a recent earnings call on August 20.
The acquisition is anticipated to enhance opportunities for Lowe’s “Pro” customer base, which represents a significant segment of the company’s sales. This strategic decision aligns with Lowe’s ongoing Total Home strategy, which focuses on delivering more comprehensive solutions to homeowners and professional contractors alike. Furthermore, Lowe’s aims to create long-term value for its shareholders through this deal.
To finance the acquisition, Lowe’s has secured $9 billion in bridge financing from Bank of America N.A. and Goldman Sachs & Co. LLC. The transaction is projected to close in the second quarter of 2025. The intention is to utilize available cash to fund the deal when finalized.
Foundation Building Materials, based in Santa Ana, is a recognized distributor specializing in ceiling systems, commercial doors, drywall, and metal framing. This acquisition is expected to create additional prospects within the professional contractor market, further enhancing Lowe’s ability to cater to the needs of builders and contractors.
In conjunction with this acquisition, Lowe’s has also revealed plans to acquire Artisan Design Group (ADG) for over $1.3 billion. ADG is known for its expertise in flooring, cabinets, and countertops, primarily serving homebuilders and property managers. This acquisition could potentially expand Lowe’s total addressable market by approximately $50 billion.
Despite facing consumer hesitation towards significant purchases due to inflationary pressures and rising interest rates, Lowe’s continues to experience strength in its professional contractor segment. Marvin R. Ellison, Lowe’s chief executive, emphasized the expectation that the U.S. will need more than 18 million homes by 2033. This statistic further justifies Lowe’s strategic acquisitions during a time when adapting to market conditions is crucial.
Fiscal forecasts for Lowe’s indicate that the company anticipates exceeding $83 billion in sales for the fiscal year 2024. This underscores Lowe’s commitment to expanding its Pro services, reinforcing its market position amid changing economic dynamics.
Overall, Lowe’s strategy reflects an adaptive approach to growing its service offerings for professional customers. The acquisitions of Foundation Building Materials and Artisan Design Group are positioned to significantly enhance Lowe’s capabilities in the construction and home improvement sectors, addressing the evolving needs of builders and contractors while driving shareholder value.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Orange County Business Journal
- Forbes
- USA Herald
- OC Register
- Click Orlando
- Wikipedia: Lowe’s
- Google Search: Lowe’s Acquisition
- Google Scholar: Lowe’s Marketing Strategy
- Encyclopedia Britannica: Home Improvement
- Google News: Lowe’s News
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.
