Ever since The Home Depot announced it would buy building materials supplier SRS Distribution in March of 2024, many wondered if rival do-it-yourself retailer Lowe’s would answer with a splash deal of its own.

The answer was provided on Aug. 20.

Home improvement retailer Lowe’s announced that it has reached an agreement to acquire Foundation Building Materials from private equity firms American Securities and Clayton, Dubilier & Rice for approximately $8.8 billion. Lowe’s said the deal represents an adjusted EBITDA multiple of 13.4x. The company secured $9 billion in fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC.

Home Depot Shares the Why Behind GMS Purchase (free for Premium)

The deal is expected to close in 2025’s fourth quarter, pending regulatory approval.

FBM Need-to-Know: Headquartered in Santa Ana, CA, FBM is a distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and related items. The company serves residential and commercial professionals involved in both new construction and repair/remodel projects. Since 2011, FBM has expanded through organic growth and acquisitions, operating over 370 locations across the U.S. and Canada and serving approximately 40,000 Pro customers.

FBM is ranked No. 11 on MDM’s 2025 Top Distributors List for Building Materials/Construction on its $3.04 billion in 2024 revenue.

On a pro forma basis, FBM generated about $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024, with compound annual growth rates of 25% for revenue and 30% for adjusted EBITDA from 2019 to 2024.

MDM’s 2Q25 M&A Report (store link) 

The Why: Lowe’s said FBM is expected to support its Total Home strategy by expanding capabilities for Pro customers, including faster fulfillment, enhanced digital tools, a trade credit platform and cross-selling opportunities with Lowe’s and Artisan Design Group. These combined resources aim to strengthen service to large Pro customers, particularly in planned spending.

“It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy,” Lowe’s Chairman, President and CCEO Marvin Ellison said in the company’s release. “FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We’re excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”

FBM President and CEO Ruben Mendoza and the senior leadership team will remain in place and continue to lead the business. The FBM team will work with Lowe’s to support service for Pro customers.

“Working alongside American Securities and CD&R has been incredible. With their support, we’ve been able to accelerate growth, expand our capabilities, and improve our position, all while staying true to our values and culture,” Mendoza said. “I am immensely grateful for what our team has accomplished and am excited about the opportunities ahead as we join forces with Lowe’s.”

Lowe’s plans to finance the acquisition using a mix of short-term and long-term debt and aims to maintain its current credit ratings.

In the Store: MDM’s U.S. MRO Market Trends Report 

Context: This is the latest megadeal reached in the building materials distribution space, including The Home Depot’s $18 billion purchase of SRS Distribution in 2024; QXO’s $8 billion purchase of Beacon at the end of April; and The Home Depot’s pending $4.3 billion acquisition of GMS. This isn’t Lowe’s first recent major investment into the pro side of its business. In mid-April, it announced it would buy interior finishes designer, distributor and installer Artisan Design Group for $1.33 billion purchase, with that deal closing in June.

FBM Timeline

Here’s a timeline of key milestones and transactions in FBM’s history

• 2011 – Founded by Ruben Mendoza, John Gorey and Tom Fischbeck
• 2015 – Acquired by Lone Star Funds
• 2016 – Acquires Superior Plus’ construction products distribution unit for $325 million
• 2017 – February IPO to launch on NYSE. Acquires MCS Door & Hardware (Texas) and Del-Pro Building Supplies (Ontario, Canada)
• 2018 – Divests mechanical insulation segment to Dunes Point Capital for $123 million. Acquires R M Supply (Missouri) and ArmCom Distributing Company (Minnesota, Dakotas, Nebraska)
• 2019 – Acquires Builders’ Supplies Limited (Toronto), Joe’s Wallboard Supply Co. (Colorado Springs) and The Supply Guy, Lakewood, WA)
• 2021 – Private equity firm American Securities acquires FBM in deal valued at $1.37 billion
• 2023 – Acquires A&D Supply, Studs Unlimited, Henrietta Building Supplies and KCI Doors & Hardware — adding 11 combined locations across multiple states
• 2024 (January) – Private equity firm Clayton, Dubilier & Rice acquires a minority stake in FBM from American Securities

In its 15-year history, FBM has acquired around 25 companies.

Lowe’s 2Q Financial Results

Alongside its acquisition announcement, Lowe’s reported its 2025 second quarter financial results, which showed an increase in sales as well as an updated 2025 outlook.

The company posted total sales of $24.0 billion, up from 2024’s $23.5 billion, while comparable sales likewise rose by 1.1% year-over-year.

Gross margin of 33.81% rose slightly from the 33.47% of a year earlier.

Lowe’s operating income of $3.46 billion on a 14.48% margin increased slightly from 2024’s $3.4 billion on a 14.61% margin.

Meanwhile, net earnings of $2.39 billion increased from 2024’s $2.38 billion.

“This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY,” Ellison said in the company’s financial release. “Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I’d also like to thank our front-line associates for their outstanding service which led to another increase in customer satisfaction scores. In June, we closed on the acquisition of ADG, which strengthens our ability to capture a greater portion of Pro planned spend and expands our reach into the new home construction market.”

As of Aug. 1, Lowe’s operated 1,753 stores, totaling approximately 195.5 million square feet of retail selling space.

2025 Outlook

Lowe’s has revised its 2025 sales forecast to a range of $84.5 billion to $85.5 billion, up from the prior estimate of $83.5 billion to $84.5 billion. Comparable sales are projected to be flat or increase by up to 1.0% year-over-year.

The company expects an operating margin between 12.3% and 12.4%, with an adjusted operating margin ranging from 12.2% to 12.3%.