Lowe's Confirms Major Deal To Acquire 370-Store Retailer

On August 20, 2025, the Fortune 100 home improvement company, Lowes Companies, Inc., announced the purchase of more than 370 locations of Foundation Building Materials (FBM) in the United States and Canada for $8.8 billion. FBM distributes drywall, commercial doors, ceiling systems, metal framing products, insulation, and more to industry professionals who construct interiors in residential and commercial properties. In 2024, FBM earned about $6.5 billion in pro forma basis revenue, a 25% growth rate over a five-year period. Benefits of acquiring FBM include the ability to expand Lowe's capacity to serve professional interior builders at a faster fulfillment rate and also enhances cross selling opportunities. Plus, FBM's well established credit program will allow trade professionals to more easily obtain materials they need.

So, in an era when some hardware/home improvement stores are struggling, Lowe's is pursuing an aggressive strategy to maintain a leadership position in this industry. The deal with FMB is projected to close in Q4 2025 with Lowe's already obtaining a $9 billion loan from Bank of America, N.A. and Goldman Sachs & Co. LLC.

Although Lowe's serves as a power player in the U.S. home improvement market for both professional builders and DIY consumers, it's not the biggest. In the National Retail Federation's 2024 rankings of the top 100 retailers, according to sales, Lowe's ranks ninth with their top competitor, Home Depot, ranking fifth. Both stores maintained their same rankings in 2025 with Lowe's having $81.5 billion in U.S. retail sales in 2024 and Home Depot checking in with $148.21 billion. So, although Lowe's, in 2024 and 2025, was only four ranking spots behind Home Depot, there was a difference of $66.71 billion in 2024 U.S. sales, perhaps fueling Lowe's aggressive acquisition strategy — a way to partially close up the revenue gap. 

However, Home Depot isn't standing still, simply waiting for Lowe's to catch up. In June 2025, Home Depot went after the professional builder market, announcing that its wholly owned subsidiary, SRS Distribution, acquired GMS, Inc. (Gypsum Management and Supply). In this acquisition, Home Depot offered to buy all outstanding GMS common stock shares at $110 each. This indicates a collective value of $4.3 billion. GMS provides drywall, steel framing, ceiling systems, and more to the United States and Canadian market for residential and commercial professionals, which is similar to what FBM offers. So, despite the recent FBM acquisition, Lowe's will need to continue to come up with additional growth strategies to make inroads against Home Depot.

Besides the professional builder market, Lowe's positions itself as a company that satisfies demand for DIY home projects, in part by being one of the home improvement companies with the best price matching policies. This policy doesn't differentiate itself from Home Depot, though, which specifically notes on their website that they match Lowe's pricing. Another way that Lowe's tries to offer the best deals is through their clearance aisle pricing although it can be tough to beat the biggest buying power player in the industry, Home Depot, in pricing.

Looking forward, Lowe's plans to focus on five key areas for growth, which includes both pro and DIY market share growth strategies along with ones for increased online sales, a more effective rewards system for customers, and productivity of their physical space. In December 2024, they announced plans to leverage AI to improve the in-store experience and customer service as well as to buy 10 to 15 additional stores annually over the next several years. They also intend to expand stores in which farm and other rural commodities are available, boosting the number of stores with these offerings to about 500. Plus, Lowe's offers deals of the day for online shoppers and is working to expand online catalogues to make Lowe's a true one stop shop. The company will also combine their MyLowe's Rewards and MyLowe's Pro Rewards under one umbrella and award pro shoppers with 5% rewards when using their credit card for eligible purchases.