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Lowe’s Buys Santa Ana Distributor for $8.8 Billion

Foundation Building Materials adds “Pro” customers

Lowe’s Companies Inc.  announced on Aug. 20 it entered into a definitive agreement to buy a Santa Ana-based distributor of ceiling systems, commercial doors, drywall and metal framing for $8.8 billion.

The deal to buy Foundation Building Materials Inc. would help Lowe’s create more opportunities for its “Pro” customers who are on the market for large residential and commercial products.

The agreement was announced on an Aug. 20 Lowe’s earnings call.

Lowe’s, in a company statement, confirmed it secured $9 billion in bridge financing from Bank of America N.A. and Goldman Sachs & Co. LLC to complete the deal.

Marvin R. Ellison, Lowe’s chief executive, said the move to buy FBM would advance the home improvement company’s Total Home strategy and enhance long-term shareholder value.

Read the full story here, published in our Aug. 25 issue.

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Parimal Rohit
Parimal Rohit
Parimal M. Rohit has nearly two decades of experience in journalism and recently covered Texas real estate for CoStar News and Austin Business Journal. He was also the editor of The Log, covering Southern California's and Northern Mexico's maritime and environmental spaces. Throughout his career, Rohit has also covered the Los Angeles Lakers, Los Angeles Dodgers, Bollywood and California politics. Rohit won 12 reporting awards from the San Diego Press Club, including best environmental reporting and best essay/commentary, and the Fort Worth chapter of the Society of Professional Journalists. His hobbies include photography, podcasting, travel and filmmaking. He is also the recipient of several fellowships, including one through the USC Annenberg Center for Health Journalism and another through the RK Mellon Foundation.
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