Lowe’s bets big on home improvement professionals with $1.32 billion acquisition
Lowe's Companies is expanding its professional contractor (Pro) offerings into a new distribution channel.
The home improvement giant has agreed to acquire Artisan Design Group (ADG) for $1.32 billion. ADG is a leading nationwide provider of design, distribution and installation services for interior surface finishes — including flooring, cabinets and countertops — to national, regional and local homebuilders and property managers.
"With more than 18 million homes needed in the United States by 2033, we expect new home construction will be a major driver of Pro planned spend for the next decade,” said Marvin R. Ellison, chairman, president and CEO, Lowe’s. “The acquisition of ADG allows us to build on our momentum with Pro planned spend and is expected to expand our total addressable market by approximately $50 billion. We look forward to welcoming the ADG team to Lowe's, and, through our combined capabilities, enhancing our offering to our expanded Pro customer base."
The deal comes as Lowe’s has been focused on enhancing its Pro business, including rolling out an updated version of its Pro loyalty program. The enhanced program offers new features and functions that Lowe’s says are often used by industry professionals.
With fiscal 2024 revenue of approximately $1.8 billion, ADG has a national network of over 3,200 specialized installers and long-standing relationships with single-family and multifamily homebuilders as well as property managers. Based in Dallas, the company operates 132 distribution, design, and service facilities in 18 states.
"We are thrilled for ADG to join forces with Lowe's," said Steve Margolius, CEO, ADG. "Our leading position in flooring, cabinets and countertops, combined with Lowe's scale and category breadth, will allow us to continue on our growth trajectory while providing an even more differentiated and comprehensive offering to the builders and property managers we serve today."
Lowe's will finance the acquisition with cash on hand. The transaction is expected to close in the second quarter of 2025.
Advisors
Centerview Partners LLC is acting as lead financial advisor to Lowe's. Greenhill, a Mizuho affiliate, is also acting as financial advisor to Lowe's. Covington & Burling LLP is acting as legal advisor to Lowe's. RBC Capital Markets is acting as lead financial advisor to ADG. Goldman Sachs is also acting as financial advisor to ADG. Latham & Watkins LLP is acting as legal advisor to ADG.
Lowe's operates more than 1,700 stores.
