Lowe’s has closed on its deal to acquire Foundation Building Materials. The acquisition was announced in late August, and the company at the time said it was valued at about $8.8 billion.
Foundation Building Materials helps bolster Lowe’s offering for its professional customers. The company has 370 locations across the U.S. and Canada and is a distributor of products like metal framing, insulation, ceiling systems, commercial doors and hardware.
"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,” Lowe’s CEO Marvin Ellison said in a statement.
Lowe’s said FBM will provide its customers with an expanded product assortment, faster fulfillment, enhanced digital tools and a trade credit platform. It also helps Lowe’s expand its footprint for pro customers by adding a presence in California, the Northeast and the Midwest.
FBM will continue to be led by its senior leadership team, as well as its founder, Ruben Mendoza.
The deal with FBM follows Lowe’s acquisition of Artisan Design Group, which it completed in June.
"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."
