Lowe’s Doubles Down On Pro Business With $8.8B Acquisition
By Jennifer Thomas – Senior Staff Writer, Charlotte Business Journal
Lowe’s Cos. Inc. (NYSE: LOW) is making an $8.8 billion cash acquisition to drive growth in its Pro business.
The Mooresville-based retailer has reached a definitive agreement to acquire Foundation Building Materials. The deal is expected to close in the fourth quarter, subject to closing conditions.
Marvin Ellison, Lowe’s chairman, president and CEO, describes the acquisition as a transformational move for the retailer, strengthening its portfolio and driving shareholder value.
This positions Lowe’s to capture a larger portion of Pro sales within that $250 billion market. It’s the next step in a multiyear strategy to transform the company’s Pro offerings, deepening its reach and allow it to serve larger customers, he says.
“This is almost 100% Pro, which is where we have our greatest strategic void when it comes to taking large product orders, being able to source that product, give them a good price and deliver it to them. FBM gives us the ability to do that seamlessly,” he says.
Santa Ana, California-based FBM serves large residential and commercial professionals in new construction as well as repair and remodel needs. It is a leading distributor of interior building products such as drywall, metal framing, ceiling systems, commercial doors and hardware, and insulation.
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