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FBM
also provides metal framing, ceiling systems, commercial doors
and hardware and other products that serve large residential and
commercial professionals in both new construction and repair and
remodel applications. It has more than 370 locations in the
United States and Canada serving 40,000 professional customers.
The acquisition is part of Lowe's move to provide more options
for professional builders. The Mooresville, North Carolina-based
company recently closed on its $1.3 billion acquisition of
Artisan Design Group, a provider of design, distribution and
installation services for interior surface finishes, including
flooring, cabinets and countertops, to home builders and
property managers.
Rival Home Depot has been making similar moves. In June the home
improvement retailer announced that it was buying specialty
building products distributor GMS for $4.3 billion.
GMS Inc. of Tucker, Georgia, is a distributor of specialty
building products like drywall, steel framing and other supplies
used in both residential and commercial projects.
Home Depot's acquisition of GMS came after it purchased SRS
Distribution, a materials provider for professionals, last year
for more than $18 billion including debt. SRS provides materials
for professionals like roofers, landscapers and pool
contractors.
Neil Saunders, managing director of GlobalData, said that the
professional builder market provides a growth opportunity to
both Home Depot and Lowe's as there's a lot of spending in the
segment.
“Pro is basically the new battleground for home improvement,” he
said. “Naturally, with two big giants in the arena, there are
likely to be some bruising battles ahead. However, at this
stage, we believe the market is big enough and fragmented enough
to allow both players to extract some wins.”
Lowe's deal for FBM is expected to close in the fourth quarter.
Aside from the acquisition, Lowe's reported its fiscal
second-quarter financial results on Wednesday. The company
posted an adjusted profit of $4.33 per share, which topped the
$4.23 per share that analysts polled by Zacks Investment
Research expected.
Revenue totaled $23.96 billion in the period, which met Wall
Street's expectations.
Lowe's raised its full-year sales outlook to a range of $84.5
billion to $85.5 billion. It previous predicted sales would be
between $83.5 billion and $84.5 billion for the year.
The company's stock rose more than 3% before the market open.
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