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Lowe's has agreed to acquire Foundation Building Materials from American Securities and CD&R for $8.8 billion, the home goods retailer announced.

State of play: The building materials supply industry is rapidly consolidating with recent deals from Lowe's, Home Depot and newer competitor QXO.

Catch up quick: FBM, which distributes interior building products spanning drywall to commercial doors, was acquired by PE firm American Securities in 2020 for $1.37 billion. CD&R also invested in FBM. 

Wednesday's deal follows Lowe's $1.3 billion acquisition of Artisan Design Group, which closed in June.

What they're saying: "With the acquisition of FBM, we are strategically, expanding our Pro offering to serve the large pro, especially the planned spend," Lowe's chair, president and CEO Marvin Ellison said on an earnings call Wednesday.

"Over the past 18 months, FBM has established new avenues for growth through strategic acquisitions and a compelling set of well-resourced organic growth initiatives," Tyler Young, principal at CD&R, said in a statement. "We are confident FBM is well-positioned for continued success."

By the numbers: FBM has a network of over 370 locations in the United States and Canada serving 40,000 professional customers.

💭 Colin's thought bubble: The transaction puts more pressure on newcomer QXO — which lost out on GMS to Home Depot — to find distributor deals to take market share from incumbents.

Zoom in: RBC and Weil, Gotshal & Manges offered sell-side financial and legal counsel, respectively.

What's next: The transaction is expected to close in Q4.

Lowe's to acquire PE-backed Foundation Building Materials for $8.8B

The deal follows the home improvement retail company's $1.3 billion acquisition of Artisan Design Group, which closed in June.

Illustration of two hammers forming an "X" shape. 

Lowe&#x27;s has agreed to acquire Foundation Building Materials from American Securities and CD&amp;R for $8.8 billion, the home goods retailer announced.State of play: The building materials supply industry is rapidly consolidating with recent deals from Lowe&#x27;s, <a class="gtmContentClick" data-vars-link-text="Home Depot" data-vars-click-url="https://www.axios.com/pro/supply-chain-deals/2025/06/30/home-depot-acquiring-gms-outbidding-qxo" data-vars-content-id="895d9c7f-5839-453e-ae0f-6fe9a83bcf7c" data-vars-headline="Lowe&#x27;s to acquire PE-backed Foundation Building Materials for $8.8B" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/supply-chain-deals/2025/06/30/home-depot-acquiring-gms-outbidding-qxo" target="_self">Home Depot</a> and newer competitor QXO.

Lowe's to acquire PE-backed Foundation Building Materials for $8.8B

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