08:58 AM EDT, 08/20/2025 (MT Newswires) -- Lowe's (LOW) will acquire interior building products distributor Foundation Building Materials in a deal worth around $8.8 billion, while the home-improvement retailer lifted its full-year sales outlook on the back of better-than-expected fiscal second-quarter results Wednesday.

The retailer will purchase Foundation Building Materials from private equity firms American Securities and CD&R, the companies said in separate statements. The transaction, which requires approval from regulators, is expected to be complete in the fourth quarter.

Lowe's said the deal will add to its offerings for its professional customer base through expanded capabilities, improved digital tools and cross-selling opportunities. Foundation Building Materials, which has a network of more than 370 locations in the US and Canada, generated roughly $6.5 billion in revenue on a pro forma basis in 2024.

"With this acquisition, we are advancing our multi-year transformation of the Pro offering," Lowe's Chief Executive Marvin Ellison said in a statement. "It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy."

Lowe's estimates the transaction to be accretive to per-share adjusted earnings in the first full year after completion, excluding synergies. The company will fund the acquisition through short- and long-term debt and has secured fully committed bridge financing of $9 billion for the deal.

Earlier in the year, Lowe's completed its $1.33 billion acquisition of interior finishes solutions provider Artisan Design Group from private equity firm Sterling Group.

Including Artisan Design prompted the retailer to raise its fiscal 2025 sales outlook to a range of $84.5 billion to $85.5 billion from its previous guidance of $83.5 billion to $84.5 billion, it said in its earnings statement Wednesday. Comparable sales are still expected to be flat to up 1%. The current consensus on FactSet is for sales of $84.4 billion and same-store sales to increase by 0.4%.

"In June, we closed on the acquisition of (Artisan Design), which strengthens our ability to capture a greater portion of Pro planned spend and expands our reach into the new home construction market," Ellison said in the earnings release.

Earnings are pegged at $12.10 to $12.35 a share, down from the prior forecast of $12.15 to $12.40, according to the company. On an adjusted basis, EPS is seen at $12.20 to $12.45. The Street is looking for GAAP and non-GAAP EPS of $12.22 and $12.24, respectively.

Lowe's posted adjusted EPS of $4.33 for the three months through Aug. 1, up from $4.10 the year before, surpassing the average analyst estimate on FactSet for $4.24. The result excluded a $0.06 per-share headwind related to the Artisan Design deal. Sales edged higher to $23.96 billion from $23.59 billion, just ahead of the Street's view for $23.95 billion.

Same-store sales inclined 1.1%, in line with the market view, driven by a "solid performance" in the pro customer and do-it-yourself categories, according to Ellison. "Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability," the CEO said.