US-based home improvement chain Lowe’s announced it will acquire interior building materials distributor Foundation Building Materials (FBM) for approximately $8.8 billion. This move will accelerate the company’s expansion into the contractor and professional construction market.
Following the news, Lowe’s shares rose 3%. The company also increased its annual sales forecast and reported better-than-expected profits in the second quarter.
The approximately $250 billion professional construction market has become a new growth area for Lowe’s and its rival Home Depot. Home Depot recently acquired GMS for $4.3 billion, while Lowe’s acquired Artisan Design Group for $1.3 billion.
California-based FBM serves over 40,000 professional clients in more than 370 locations.
Lowe’s CEO Marvin Ellison emphasized that thanks to FBM’s strong distribution network and leadership, the company will “gain significant strength in the Pro customer segment.”The deal is expected to be completed in the last quarter of 2025. Lowe’s anticipates annual sales of $85.5 billion after the transaction.
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