Home improvement major Lowe's Companies, Inc. (LOW) on Wednesday announced that it has entered into a definitive agreement to acquire Foundation Building Materials or FBM for around $8.8 billion in cash.
The transaction is expected to be accretive to adjusted earnings per share in the first full year, post-closing, excluding synergies. The acquisition would close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval.
FBM, a distributor of interior building products, holds a network of over 370 locations in the United States and Canada serving 40,000 Pro customers. In 2024, on a pro forma basis, FBM generated approximately $6.5 billion in revenue and $635 million in adjusted EBITDA.
With the acquisition, FBM is expected to accelerate Lowe's Total Home strategy by enhancing its offering to Pro customers.
Ruben Mendoza and the senior leadership team will continue to lead FBM.
Lowe's expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings.
The company has secured $9.0 billion in a fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC.
In the pre-market activity, Lowe's shares were gaining around 4 percent to trade at $265.95.
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