Lowe’s is ramping up its professional (Pro) business with the $8.8 billion acquisition of Foundation Building Materials (FBM)
The move is designed to strengthen Lowe’s digital and AI-enabled capabilities for Pro customers while expanding its footprint across the U.S. and Canada. FBM is a leading distributor of interior building products.
“FBM represents a strategic step forward in advancing our total home strategy and digitally transforming our Pro offering,” CEO Marvin Ellison said during Lowe’s quarterly earnings call. “With this acquisition, we can better serve larger pros in a $250 billion total addressable market, while continuing to grow our DIY and small-to-medium Pro segments.”
Lowe’s reported second-quarter sales of $24 billion, with comparable sales up 1.1%. Online sales rose 7.5%, fueled by a more immersive shopping experience and the growth of MyLowe’s Rewards, which has boosted customer loyalty and repeat purchases. The company also launched a home improvement creator network with influencers such as MrBeast, targeting Gen Z and millennial customers, alongside ongoing campaigns with Lionel Messi and NFL sponsorships.
“Our digital initiatives are allowing us to meet pros where they are — on mobile, online, and at the job site — while maintaining strong in-store service,” Ellison said.
Lowe’s acquisition of Foundation Building Materials (FBM)
Lowe’s is leaning heavily on digital tools to differentiate its Pro offering. FBM’s MyFBM mobile app provides real-time pricing, ordering, and delivery tracking in English and Spanish. Meanwhile, its AI Blueprint Takeoff technology automatically extracts material quantities from digital construction plans. That streamlines the estimating process for contractors.
Ellison emphasized that these digital capabilities, combined with Lowe’s Pro extended aisle and online platforms, will allow Pros to access a broader portfolio of products, faster fulfillment, and more accurate project planning.
“This acquisition strengthens our digital toolkit for Pros, expanding job site delivery, trade credit options, and integrated tech that simplifies complex projects,” he said.
The acquisition complements Lowe’s earlier purchase of Artisan Design Group (ADG), enabling the company to offer large pros a full suite of interior finishes—from drywall and ceiling systems to flooring, cabinets, and countertops—through a seamless digital and physical experience.
How Lowe’s benefits from acquiring FBM
FBM was founded in 2011. It operates over 370 branches and has built a scalable, multi-trade distribution platform. In 2024, it generated $6.5 billion in revenue. It also generated $635 million in EBITDA, with a five-year revenue CAGR of approximately 25%. Its leadership team, led by CEO Ruben Mendoza, has deep experience integrating acquisitions and leveraging digital tools to drive sales.
Ellison outlined the strategic benefits:
- Enhanced digital Pro capabilities. Faster fulfillment, AI-enabled takeoffs, and expanded mobile and online access for complex orders.
- Integrated platform for growth. Utilizing FBM’s ERP system and integration playbook to scale product categories efficiently.
- Comprehensive solutions. Combining FBM and ADG digitally and physically to offer complete interior solutions for large pros.
- Market expansion. FBM’s presence in California, the Northeast, and Midwest enhances Lowe’s reach in high-density markets.
“This acquisition unlocks the ability to serve pros more comprehensively, achieve scale, and operate with greater speed and flexibility through digital tools,” Ellison said.
Chief financial officer Brandon Sink said the companies expect to close the acquisition in 2025, subject to regulatory approvals. They also expect it to be accretive to adjusted EPS in the first full year excluding synergies. Lowe’s will fund the deal through a mixture of short- and long-term debt. It will pause share repurchases until the company reaches its target leverage ratio.
Chief merchandising officer Bill Boltz highlighted strong comps in hardware, lawn and garden, tools, building materials, and appliances. Notably, Lowe’s added DowTile, the nation’s top-selling tile brand, to its Pro lineup, with integrated direct-to-site delivery capabilities.
Chief operating officer Joe McFarland emphasized the role of AI in-store through MyLo Companion, which helps associates provide faster, more informed service. The AI app is driving measurable improvements in customer satisfaction and associate confidence across departments.
Looking ahead, Lowe’s expects full-year 2025 sales of $84.5 billion to $85.5 billion, with comparable sales flat to up 1%.
“With FBM and ADG, our total home strategy is increasingly digital, enabling us to serve pros more efficiently, enhance the customer experience, and deliver long-term shareholder value,” Ellison said.
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