Foundation Building Materials to Be Sold to Lowe's for $8.8 Billion
Deal News | Aug 20, 2025 | Clayton, Dubilier & Rice, Inc.
Clayton, Dubilier & Rice (CD&R) and American Securities have agreed to sell Foundation Building Materials (FBM) to Lowe's for $8.8 billion. FBM, a leading distributor of interior building products across North America, has achieved significant growth under its current private equity ownership, marked by strategic acquisitions and a commitment to enhanced customer service through digital innovations. This transaction, expected to close in late 2025, represents the culmination of a successful partnership that significantly expanded FBM’s market reach and operational capabilities. RBC Capital Markets and Weil, Gotshal & Manges LLP advised on the deal.
Sectors
- Building Materials & Construction
- Private Equity & Investment
- Retail
Geography
- North America – FBM operates over 370 locations serving customers across the United States and Canada.
- United States – Both FBM’s headquarters and key market operations are based in the United States, and major participants like Lowe's and American Securities are headquartered in the U.S.
Industry
- Building Materials & Construction – FBM is a significant distributor in the building materials industry, catering primarily to the construction sector, with products like drywall and insulation.
- Private Equity & Investment – CD&R and American Securities, the owners of FBM, are private equity firms involved in the sale of the company to Lowe's.
- Retail – Lowe's, the acquiring company, is a major player in the retail industry, specifically in the home improvement and building products space.
Financials
- $8.8 billion – Transaction value for the acquisition of FBM by Lowe's.
- 27% per annum – Average annual revenue growth experienced by FBM under its current ownership.
- 31% per annum – Average annual EBITDA growth experienced by FBM under its current ownership.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Foundation Building Materials, Inc. | Target company | Company | A leading distributor of building products in North America, headquartered in Santa Ana, California. |
| Lowe's Companies, Inc. | Buyer | Company | A major home improvement retailer that is acquiring FBM for $8.8 billion. |
| American Securities LLC | Seller | Company | A private equity firm co-owning FBM and involved in its sale to Lowe's. |
| Clayton, Dubilier & Rice, Inc. | Seller | Company | A leading private equity firm co-owning FBM and involved in its sale to Lowe's. |
| RBC Capital Markets | Financial Advisor | Company | Provided exclusive financial advisory services for the transaction. |
| Weil, Gotshal & Manges LLP | Legal Advisor | Company | Served as legal counsel to FBM, American Securities, and CD&R. |