Lowe's, a national home improvement chain, has entered into an agreement to acquire Foundation Building Materials for approximately $8.8 billion, according to a statement from Lowe's.
Since 2011, Foundation Building Materials has expanded its network to more than 370 locations throughout the United States and Canada.
Lowe's says the company is a leading provider of interior construction products, including drywall, metal framing, ceiling systems, insulation, commercial doors and hardware.
The acquisition will accelerate its “Total Home Strategy” by expanding its offering to customers, the statement said.
By combining FBM capabilities – such as a robust trade credit platform, enhanced digital tools and faster order fulfillment – with Lowe's existing products and services from the recently acquired Artisan Design Group, the company aims to become a premier destination for large-scale projects.
“Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large Pro customers in a $250 billion total addressable market,” said Marvin R. Ellison, Lowe's chairman, president and CEO. “With these acquisitions, Lowe’s will be well positioned to expand our market penetration and benefit from the expected recovery in homebuilding, with an estimated 16 million new homes needed in the U.S. by 2033.”
“By expanding our pro penetration, we also expect more sustainable revenue and profit growth as well as long-term shareholder value,” he continued.
Lowe's serves approximately 16 million customers weekly in the United States and has 1,700 hardware stores.
There are 28 Lowe's locations in Massachusetts, according to the company's website.
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