Lowe’s Expands Its Reach with $8.8 Billion Acquisition

California, September 3, 2025

News Summary

Lowe’s has announced a significant acquisition of Foundation Building Materials for $8.8 billion to enhance its professional builder services. This move will strengthen Lowe’s market presence and diversify its offerings, tapping into FBM’s established distribution network of 370 locations in the U.S. and Canada. The acquisition aligns with Lowe’s ongoing transformation strategy aimed at better serving contractors and builders. Expected to close in the second quarter of 2025, this deal follows Lowe’s previous acquisition of Artisan Design Group, reinforcing its competitive stance in the home improvement market.

Breaking News: Lowe’s Expands Its Reach with Big Acquisition in California

In a bold move to boost its presence in the professional builders’ market, Lowe’s has announced its plans to acquire Foundation Building Materials (FBM) for a staggering $8.8 billion. This acquisition not only marks a significant investment but also represents a key step in Lowe’s multi-year transformation strategy aimed at enhancing its professional offerings.

The announcement was made in a release dated August 20, highlighting Lowe’s commitment to strengthening its services for contractors and builders. With this acquisition, Lowe’s is poised to tap into the expertise and extensive distribution network that FBM has built since its inception in 2011.

About Foundation Building Materials

Foundation Building Materials has established a strong presence across the United States and Canada, boasting 370 locations. Over the years, they have garnered a loyal clientele of approximately 40,000 professional contractors and builders. FBM offers a diverse range of products, from drywall and metal framing to commercial doors and insulation, making them a vital supplier for many in the construction industry.

In Alabama alone, FBM operates in seven locations, including cities like Huntsville, Auburn, and Birmingham. For comparison, Lowe’s currently has 39 stores throughout the state, indicating a robust market presence that this acquisition will now amplify.

Why This Acquisition Matters

Lowe’s Chairman Marvin Ellison emphasized that the acquisition of FBM is crucial for enhancing the company’s Pro offering. The move is strategic, tying into Lowe’s previous acquisition of the Artisan Design Group (ADG), a deal valued at $1.3 billion that was aimed at expanding its footprint in a highly competitive market. Together, these acquisitions create a powerhouse that can more effectively compete with major players in the industry, such as Home Depot.

The market for home improvement is valued at around $50 billion, with ADG playing a significant role in design distribution and installation services for home builders and property managers. By combining resources from both FBM and ADG, Lowe’s is demonstrating a clear intent to diversify and expand its offerings.

What’s Next for Lowe’s?

With plans to finance the FBM acquisition using cash reserves, it is expected to close in the second quarter of 2025. Lowe’s aims to leverage FBM’s distribution platform and further solidify its Pro services. This step is not just about acquiring another company; it’s also about expanding a total addressable market that can improve the services offered to builders and contractors alike.

This acquisition will likely introduce new products and services to Lowe’s Pro clients, enhancing their shopping experience and enabling them to access a wider range of quality building materials. Moreover, as Lowe’s forges ahead, both new and existing customers can expect to witness a profound transformation in the offerings at their local stores.

Conclusion

Lowe’s acquisition of Foundation Building Materials is a significant shakeup in the construction supply market. With strategic efforts to enhance professional services, Lowe’s is clearly setting its sights on greater territory, making it an exciting time for builders and contractors in the industry.

FAQ

• What is the purpose of Lowe’s acquisition of Foundation Building Materials?

  The acquisition is aimed at enhancing Lowe’s services in the professional builders’ market, expanding their total addressable market.

• How many locations does FBM have?

  Foundation Building Materials operates a total of 370 locations across the United States and Canada.

• What types of products does FBM offer?

  FBM provides a range of interior building products, including drywall, metal framing, ceiling systems, commercial doors, and insulation.

• When is the acquisition expected to close?

  The acquisition is expected to close in the second quarter of 2025.

• What other acquisitions has Lowe’s made recently?

  Lowe’s recently announced the acquisition of Artisan Design Group (ADG) for $1.3 billion.

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Additional Resources

• AL.com: Major Home Improvement Chain’s Acquisition
• Wikipedia: Lowe’s
• Fox10: Lowe’s Acquisition Deal
• Google Search: Lowe’s Foundation Building Materials acquisition
• Industrial Distribution: Purvis Industries Acquisition
• Google News: Lowe’s acquisition

Author: STAFF HERE BIRMINGHAM WRITER

The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson 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 Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.