Lowe’s said on Wednesday it has agreed to buy interior building products distributor Foundation Building Materials for nearly US$8.8 billion, stepping up its expansion into the professional builder market.
Shares of the home improvement chain rose 4.3 per cent in premarket trading as the company also beat second-quarter profit estimates.
Lowe’s and rival Home Depot are leaning on deals to bolster their businesses that serve contractors and builders, a key growth area, amid softness in the do-it-yourself segment.
Lowe’s acquired Artisan Design for $1.33 billion in April, while Home Depot in late June decided to buy specialty building products distributor GMS for about $4.3 billion.
The company raised its total annual sales forecast to a range of $84.5 billion to $85.5 billion, compared to its prior expectation of $83.5 to $84.5 billion.
It earned $4.33 per share on an adjusted basis in the quarter, exceeding estimates of $4.24, according to data compiled by LSEG.
(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)
