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Lowe’s Companies Inc., the U.S. home improvement retailer led by one of the world’s highest-ranking Black CEOs, Marvin Ellison, is set to acquire Foundation Building Materials (FBM) in an $8.8 billion all-cash deal. The move reflects Ellison’s push to strengthen Lowe’s footprint and deliver stronger earnings.
The deal is expected to give Lowe’s a stronger position in the $250 billion professional construction and remodeling market, where demand from contractors and builders continues to grow. By adding FBM’s distribution network and product lines, Lowe’s aims to broaden its Pro customer offerings and cement its place in key segments of the building industry.
Key terms of the $8.8 billion acquisition
Under the terms of the agreement, Lowe’s will acquire FBM at an enterprise value representing 13.4x adjusted EBITDA. The company has secured $9 billion in fully committed bridge financing from Bank of America and Goldman Sachs, with plans to fund the deal through a combination of short- and long-term debt.
FBM reported $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024, reflecting compound annual growth rates of 25 percent and 30 percent, respectively, since 2019. The distributor operates over 370 locations across the U.S. and Canada, serving 40,000 professional customers.
Strategic rationale and financial impact
Chairman, President, and CEO Marvin Ellison described the deal as pivotal to Lowe’s “Total Home” strategy, citing FBM’s scale and strong leadership as complementary to its own offerings.
The integration of FBM, alongside the recently acquired Artisan Design Group, will expand Lowe’s capabilities in drywall, ceiling systems, and framing, while unlocking cross-selling and credit solutions for Pro customers.
“FBM’s scalable, multi-trade platform allows us to serve the large Pro planned spend in a way we couldn’t before,” Ellison said. “It’s a major milestone in advancing our transformation.”
FBM’s chief executive Ruben Mendoza and his senior leadership team will remain in place, working closely with Lowe’s to accelerate growth while ensuring continuity of service to existing customers.
Lowe’s growth momentum and market position
Founded in 1921, Lowe’s operates over 1,700 stores across North America and employs more than 300,000 associates. With a market capitalization of $145 billion and a retail footprint spanning 195 million square feet, the company is a dominant player in the home improvement sector.
In the first half of 2025, Lowe’s reported $20.9 billion in total sales, with total assets rising slightly to $45.37 billion. Under Marvin Ellison, who holds a 0.13 percent stake totaling 748,000 ordinary shares, the company has focused on balance sheet strength and strategic reinvestment, advancing its transformation strategy and targeting higher-value customer segments.
