Lowe's Companies, Inc. (NYSE: LOW) today announced it has completed its previously announced acquisition of Foundation Building Materials, an industry-leading building materials and construction products distribution company with over 370 locations across the United States and Canada.
Today’s news release reports the purchase should enhance Lowe's offering to Pro customers through an expanded product assortment, faster fulfillment, improved digital tools, and a robust trade credit platform.
“It will provide Lowe's with significant growth opportunities to expand our Pro footprint, given its complementary presence in key geographies like California, the Northeast and the Midwest. It also creates significant cross-selling opportunities between FBM and Lowe's as well as the recently acquired Artisan Design Group.
"Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large Pro customers within a $250-billion total addressable market. We would like to extend a warm welcome to the FBM team, and we look forward to building on their proven track record of profitable growth," said CEO Marvin. R. Ellison. "Together with our recent acquisition of ADG, we are creating a comprehensive interior solutions platform to better serve the homebuilder. With these acquisitions, Lowe's will be well-positioned to expand our market penetration and capitalize on the expected recovery in housing, with an estimated 16 million new homes needed in the U.S. by 2033."
LOW shares shed $1.46 to $236.13.
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