Lowe’s to Buy Foundation Building Materials for $8.8 Billion
Lowe’s is set to buy interior building products distributor, Foundation Building Materials, for nearly $8.8 billion. The purchase of the Santa Ana, Calif. based company is a step towards their expansion to directly supply professional contractors and builders.
A softer housing market has slowed DIY consumers whose sales make up about 70% of Lowe’s annual revenue. Foundation Building Materials supplies construction products such as drywall, metal framing, ceilings, doors, and hardware. Their reach is around 40,000 professional customers through more than 370 locations in the U.S. and Canada. The deal is set to close in the fourth quarter of 2025. After news of the shift towards the pro-builder market annual sales forecast and beat second-quarter profit estimates raised.
“The urgency of acquisition in the pro distributors market is clearly escalating, which we think will be a focus as competition heats up,” J.P.Morgan analyst Christopher Horvers wrote in a note.