Lowe's buys Foundation Building Materials for $8.8 billion

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(D))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),U=function(){function e(t,n,o){L(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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Wednesday's announcement signals a major push into the contractor-focused side of Lowe's business.The company's stock was up 0.8% to $258.50 as of 12:45pm EST on Wednesday, after the retailer also lifted its full-year revenue outlook and delivered stronger-than-expected quarterly earnings .Foundation Building Materials, based in California, provides drywall, framing, ceiling systems, doors and hardware to nearly 40,000 customers across more than 370 warehouses in the U.S. and Canada.Roughly 70% of Lowe’s annual sales still come from do-it-yourself shoppers. However both Lowe’s and its chief competitor, Home Depot, have been striking acquisitions to capture a bigger slice of the $250 billion market for professional builders, at a time when consumer-driven home projects have slowed.In April, Lowe's paid $1.33 billion for Artisan Design Group, while Home Depot in June agreed to purchase GMS, a specialty distributor, for about $4.3 billion.“Consolidation among suppliers serving the trade is clearly accelerating, and we anticipate this will remain a theme as rivalry between large players intensifies,” J.P. Morgan analyst Christopher Horvers said in a client note viewed by Reuters.Both Lowe's and Home Depot are leaning more heavily on their professional contractor base, which has become a stable counterweight to softer DIY demand.Home Depot posted its second quarter earnings on Tuesday, which revealed weakening big-ticket sales, as consumers pulled back from kitchen remodels and bath overhauls. Foot traffic slipped about 2%, according to Placer.ai, underscoring the caution hanging over the home-improvement markets. Yet, professional contractors still need roofing, lumber, and bulk orders to keep their businesses moving even when homeowners step back from ambitious remodels.What's more, the U.S. has a housing shortfall of 3.8 million, according to a report  by Realtor.com. This is partially due to the 2008 crash, which triggered a collapse in new construction. Over the past 15 years, roughly 1.23 million homes were built  annually —18% fewer than the average from 1968–2000.However, new-home construction outpaced household formations last year, for the first time since 2016, according  to Realtor.com.Considering the country's urgent need for new homes, Lowe's and Hope Depot may feel that contractor-focused offerings are more durable than non-essential home improvement supplies, as consumers brace for tariff-related inflation in the months, or even years, to come.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,389.00 +0.75 (+0.01%)Dow Futures44,875.00 +21.00 (+0.05%)Nasdaq Futures23,210.00 -9.75 (-0.04%)Russell 2000 Futures2,283.10 +2.50 (+0.11%)VIX16.60 +0.91 (+5.80%)Gold3,371.30 -10.30 (-0.30%)PortfolioSign in to access your portfolioSign inTop gainersXPEV XPeng Inc. 22.75 +2.38 (+11.68%)TLX Telix Pharmaceuticals Limited 12.09 +1.12 (+10.21%)YMM Full Truck Alliance Co. 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