Lowe’s agreed to acquire Foundation Building Materials for $8.8 billion in cash as it expands its professional business, according to Bloomberg. Foundation Building, a distributor of drywall and other products with more than 370 North American locations, generated $6.5 billion in sales last year and was acquired by American Securities in 2020. Lowe’s and Home Depot are focusing on expanding their professional business that serves contractors rather than DIY consumers. In June, Home Depot agreed to buy building products distributor GMS for $4.3 billion. Lowe’s raised full-year sales guidance to $84.5 billion to $85.5 billion and said it secured $9 billion in bridge financing from Bank of America and Goldman Sachs. The company plans to fund the purchase with short- and long-term debt while maintaining its credit ratings. The transaction is expected to close in the fourth quarter of 2025. Shares rose 3.8% in premarket trading and are up 6.7% over the past year.
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