National home improvement chain Lowe’s finalized an $8.8 billion deal this week to acquire one of its competitors. On Thursday, the company confirmed it had completed the purchase of California-based Foundation Building Materials (“FBM”).
FBM is a leading building materials and construction products distribution company that has more than 370 locations in the U.S. and Canada.
“Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large Pro customers within a $250 billion total addressable market. We would like to extend a warm welcome to the FBM team, and we look forward to building on their proven track record of profitable growth,” said Marvin. R. Ellison, Lowe’s chairman, president, and CEO.
Founded in 2011, FBM carries several types of products used in construction and home repair. Available products include: drywall, hardware, commercial doors, insulation, fasteners, ceiling systems, metal framing, power tools, and more.
While FBM is now owned by Lowe’s, the company will continue to operate separately and be led by its founder, Ruben Mendoza. Lowe’s first announced plans to buy FBM in August as the company aims to expand its market reach.
The deal follows Lowe’s previous acquisition of Artisan Design Group (“ADG”), a nationwide provider of design, distribution and installation services for interior surface finishes.
“With these acquisitions, Lowe’s will be well-positioned to expand our market penetration and capitalize on the expected recovery in housing, with an estimated 16 million new homes needed in the U.S. by 2033,” Ellison said. “By expanding our Pro penetration, we also expect to drive more sustainable sales and profit expansion and deliver long-term shareholder value.”
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