LBM M&A Activity Soared in 2025, Fueled by Large-Scale Deals

Last year saw 56% more locations acquired in the lumber and building supply (LBM) industry than in 2024 and in 2021 through 2023 combined, according to the latest Webb Analytics’ annual Deals Report. The report details all acquisitions, greenfield openings and closures by lumberyards and specialty construction supply dealers that serve both residential pros and customer-oriented hardware stores and home centers. 

“Even more than in 2024, megadeals skewed the M&A numbers in 2025,” says Craig Webb, president of Webb Analytics and the report’s author. “Four of the 120 deals by just three of the 75 buyers accounted for 85% of the 1,813 construction supply facilities that changed hands in 2025. Those four deals saw QXO acquire Beacon Building Supply, The Home Depot’s SRS Distribution purchase Gypsum Management & Supply and Lowe’s absorb both Foundation Building Materials and Artisan Design Group. When you remove those deals, only 269 facilities changed hands—the lowest number since 2019.”

In the hardware realm, The Aubuchon Company and Ace Hardware’s Westlake and Great Lakes subsidiaries made several acquisitions. Aubuchon completed the most transactions, completing six deals to take over 10 stores. Westlake Ace Hardware acquired five stores in four transactions and opened two greenfield stores. Great Lakes Ace purchased one additional store. Hammond Lumber purchased Pleasant River Lumber, adding 17 stores to the company, and Costello’s Ace Hardware bought Rommell’s Ace, an 11-store deal. 

For home centers, Lowe’s opened five new stores, The Home Depot opened three and Gold Beach Lumber purchased Hennick’s Home Center’s two stores.

“I expect we’ll see more of the same churn in 2026 for hardware stores and home centers that we saw this year,” Webb says. “We have already had one acquisition, 37 openings and eight closures announced in this space so far this year. As for the big pro-oriented stores, we’re expecting QXO to make some notable purchases. Elsewhere, the M&A picture is likely to be affected most by when and how fast the Fed eases its rates and the cost of borrowing goes down as a result.”