The largest acquisition in history is settled! Lowe's Companies, Inc. acquires FBM, strengthening professional customer business to boost growth.

Lowe's Companies, Inc. (LOW.US) completed the previously announced acquisition deal with Foundation Building Materials (FBM) this week, marking the largest acquisition in the company's history. Strategic value of the acquisition for Lowe's Companies, Inc. FBM operates over 370 business outlets in the United States and Canada, serving approximately 40,000 professional customers with products including drywall, insulation materials, metal frames, ceiling systems, commercial doors and windows, hardware, and other building materials. In 2024, the company reported revenues of $6.5 billion and adjusted EBITDA of $635 million. The acquisition of FBM is expected to enhance Lowe's Companies, Inc.'s service capabilities for professional customers through expanding product categories, speeding up fulfillment processes, optimizing digital tools, and establishing a comprehensive industry credit platform. The home improvement giant stated that FBM's business presence in key regions such as California, the Northeast, and the Midwest complements Lowe's Companies, Inc., offering significant growth opportunities and expanding market coverage for their professional customer business. Moreover, the acquisition is seen as creating numerous cross-selling opportunities between FBM, Lowe's Companies, Inc., and recently acquired Artisan Design Group (ADG). Marvine Ellison, CEO of Lowe's Companies, Inc., emphasized, "Through these acquisitions, Lowe's Companies, Inc. will have favorable conditions to expand market penetration and seize the expected housing market recovery opportunity - an estimated need for approximately 16 million new homes by 2033." He added, "By increasing the penetration of our professional customer business, we also expect to drive more sustainable sales and profit growth, creating long-term value for shareholders." Analysts optimistic about acquisition synergy Jefferies Financial Group Inc. analyst Jonathan Matuszewski believes that Lowe's Companies, Inc.'s efforts to better serve the vast "Complex Pro Market" in competition with Home Depot, Inc. (HD.US) will eventually pay off. He mentioned, "With ADG and FBM, Lowe's Companies, Inc. already has a leading interior solutions platform in the attractive new home construction and repair & remodeling verticals." Matuszewski stated that Lowe's Companies, Inc. can now provide faster fulfillment services, wider product selections, superior digital tools, and a comprehensive industry credit platform for the complex professional customers in the new home construction and repair & remodeling industries. In addition to potential cost synergies, the new business is expected to bring numerous cross-selling opportunities. Looking ahead, the market expects Lowe's Companies, Inc. to engage in more "bolt-on M&A" deals. As of now, Lowe's Companies, Inc. stock price has fallen by 3.48% since the beginning of the year.