Lowe’s acquires Foundation Building Materials for $8.8b

Lowe’s Companies Inc., the U.S. home improvement retailer led by one of the world’s highest-ranking Black CEOs, Marvin Ellison, has completed its $8.8 billion all-cash acquisition of Foundation Building Materials (FBM), a leading building materials distributor with more than 370 branches across the U.S. and Canada.

The deal, which was first announced in August 2025, helps Lowe’s grow into the $250 billion professional, or “Pro,” market and is in line with the company’s goal of making the supply chain for construction and renovation projects more connected.

Lowe’s expansion into the Pro market

With the acquisition finalized, FBM will work with Artisan Design Group (ADG) to create a bigger platform for professional services. Lowe’s can now reach more builders, remodelers and contractors because it has more products, better delivery options, and better trade credit services. 

The combined network should speed up order fulfillment and open up new cross-selling opportunities in major U.S. regions like California, the Northeast, and the Midwest. Ruben Mendoza, the founder of FBM, and his senior management team will stay in their current jobs to keep things running smoothly and keep in touch with contractors.

Ellison highlights a strategic milestone

Chairman, President, and CEO Marvin Ellison described the deal as a key milestone in building a comprehensive interior solutions platform that supports the homebuilding industry, emphasizing that the move advances the company’s long-term strategy to deepen engagement with professional contractors.

“Completing the acquisition of FBM is a key step in accelerating our Total Home strategy to serve large Pro customers,” he said. Despite steady housing demand, the U.S. is projected to need 16 million new homes by 2033, a slowdown in construction could challenge Lowe’s growing Pro business.

Strategic background and future

Lowe’s has been around since 1921 and has more than 1,700 stores in North America. It also has more than 300,000 employees. It is a major player in the home improvement industry, with a market capitalization of $130.23 billion and a retail footprint of 195 million square feet.

The FBM deal brings Lowe’s into closer competition with Home Depot, which has been expanding its own Pro distribution arm through deals involving SRS and GMS. The professional segment has become one of the most contested and profitable areas in home improvement retail.

The outcome will hinge on execution over the next 12 to 24 months. For Lowe’s, success will mean proving that its Pro strategy can deliver growth, efficiency, and customer trust at a scale that reshapes its business for the long term.