Aug 20, 2025 - Business
Lowe's beats expectations, sets $8.8 billion building products deal
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Lowe's this morning beat Q2 earnings expectations and said that it will pay $8.8 billion to buy interior building products distributor Foundation Building Materials from private equity firms American Securities and CD&R.
The big picture: New home starts hit a five-month high in July, led by multifamily units, but permits for future builds are at a five-year low.
- That may not be the strongest environment for a giant acquisition in the professional contractor space, although Lowe's may feel it needs to play catch up with Home Depot — which last year paid over $18 billion to buy SRS Distribution from Leonard Green & Partners and Berkshire Partners.
The intrigue: There are also serious questions about whether the government's housing starts data reflects what's really happening.
- Multiple economists argued Tuesday that private-sector data shows starts falling sharply, not rising, both for single-family homes and multifamily units.
By the numbers: Home Depot shares climbed over 3% yesterday on its own earnings, whle Lowe's is up over 2% in premarket trading.
