Lowe’s Companies Inc. has finalized its $8.8 billion acquisition of Foundation Building Materials (FBM), cementing its move deeper into the professional construction market and expanding its digital capabilities for B2B customers.

Lowe’s first announced the deal in August. It gives Lowe’s a much larger presence in the $250 billion professional building sector and extends its footprint across key markets, including California, the Northeast and the Midwest.

FBM is a major distributor of drywall, insulation and ceiling systems. It operates more than 370 branches across the United States and Canada. The company will continue under its existing brand and leadership, led by founder and CEO Ruben Mendoza.

“Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large professional customers,” said Marvin Ellison, Lowe’s chairman, president, and chief executive officer. “Together with our recent acquisition of Artisan Design Group, we’re creating a comprehensive interior solutions platform to better serve homebuilders and commercial contractors.”

Lowe’s is No. 11 in the Top 2000 Database, which ranks North America’s largest online retailers by annual ecommerce sales. The retailer is in the Hardware & Home Improvement category. Digital Commerce 360 projects Lowe’s online sales will reach $11.90 billion in 2025.

Lowe’s completes FBM acquisition

Beyond its physical network, FBM brings digital tools that will strengthen Lowe’s B2B ecommerce capabilities. Lowe’s plans to integrate FBM’s AI-powered Blueprint Takeoff software into its ProDesk platform. The software extracts material needs directly from digital plans. This integration will help contractors generate faster, more accurate estimates and streamline ordering.

The company also plans to roll out FBM’s MyFBM mobile app. The app enables real-time pricing, ordering and delivery tracking, in both English and Spanish, across Lowe’s professional network.

“FBM’s technology enhances our ability to connect project planning and fulfillment,” Ellison said. “We’re expanding digital solutions that help professional customers save time and improve accuracy.”

Lowe’s chief financial officer Brandon Sink said the acquisition is expected to be accretive to earnings in its first full year, excluding synergies. Lowe’s is funding the acquisition through a mix of short- and long-term debt. FBM generated $6.5 billion in revenue and $635 million in EBITDA in 2024. Lowe’s expects additional benefits from cross-selling, operational efficiencies, and digital integration.

“FBM’s proven business model, combined with Lowe’s scale and supply chain strengths, positions us to create meaningful long-term value,” Sink said.

Impact of the acquisition

Industry analysts view the completed deal as a strategic shift for Lowe’s toward a hybrid retail and distribution model powered by data and digital commerce. With FBM’s contractor relationships and ecommerce tools, Lowe’s is now better positioned to compete with Home Depot and other national suppliers for professional market share.

Ellison said the deal comes at a time of sustained demand for construction and renovation.

“With an estimated 16 million new homes needed by 2033 and $50 billion in deferred project demand, we see strong momentum ahead,” he said.

Together, FBM and Artisan Design Group give Lowe’s end-to-end reach — from digital estimating and materials sourcing to fulfillment and installation. The integration strengthens its connected supply chain and advances its push to deliver a seamless digital experience for professional customers.

“This acquisition enhances our competitive position and accelerates our strategy,” Sink said. “With FBM now part of Lowe’s, we’re ready to meet the evolving digital and operational needs of professional builders across North America.”

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