Lowe's is purchasing Foundation Building Materials Inc. from American Securities LLC and CD&R for $8.8 billion, a move aimed at bolstering its Pro clientelle.

FBM is a North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. Since 2011, FBM has grown into a network of over 370 locations in the United States and Canada, serving 40,000 Pro customers.

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.

"With this acquisition, we are advancing our multi-year transformation of the Pro offering," said Marvin R. Ellison, Lowe's chairman, president, and CEO in a written statement. "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.

"FBM's scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering," Ellison added. "We're excited to welcome the FBM team and strengthen our solutions for our growing Pro customers."

In 2024, on a pro forma basis, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA. It generated approximately 25% and 30% CAGR for revenue and adjusted EBITDA, respectively, from 2019 to 2024.

Under the ownership of American Securities and CD&R, FBM has experienced a period of growth resulting in 27% per annum revenue growth and 31% per annum EBITDA growth. According to a news release, this momentum has been driven by both organic expansion and strategic transactions, including the acquisitions of Beacon Roofing Supply's interior products business, Marjam Supply Company, Unified Door & Hardware, and REW Materials.

"Working alongside American Securities and CD&R has been incredible," said Ruben Mendoza, CEO of FBM. "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. I am immensely grateful for what our team has accomplished and am excited about the opportunities ahead as we join forces with Lowe's."'

Mendoza and the senior leadership team will continue to lead FBM. The distributor's long-term goals include launching a new e-commerce platform and digital application and investing in expanding its commercial capabilities.

"Over the last four and a half years, we have been privileged to work with an extraordinary management team, building on a relationship with Ruben Mendoza that goes back years before our investment," said Kevin Penn, partner at American Securities. "We're proud to have supported FBM in achieving remarkable growth, transforming the business through strategic M&A, the opening of new markets, and innovative e-commerce initiatives. This transaction is a testament to the value of true partnership with an outstanding team."

Lowe's rival Home Depot has made similar moves to boost its Pro ecosystem. Last year, it purchased roofing distributor SRS Distribution, and this year is acquiring Georgia-based GMS Inc. for $5.5 billion. GMS operates a network of more than 320 distribution centers with product offerings of wallboard, ceilings, steel framing and complementary construction products.

RBC Capital Markets served as exclusive financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to FBM, American Securities, and CD&R.