Lowe’s Companies has signed a definitive agreement to acquire Artisan Design Group (ADG) for $1.32bn, in a move to expand its professional services offering.
ADG, a US-based provider of interior design, distribution, and installation services, will enhance Lowe’s Pro division by entering a new distribution channel within a $50bn market.
ADG has established itself through organic growth and acquisitions, with financial year 2024 revenue of roughly $1.8bn.
Its integration, supported by a network of more than 3,200 specialised installers and established relationships with homebuilders and property managers, is expected to enhance Lowe’s position in the market.
Lowe’s chair, president, and CEO Marvin R Ellison said: “With more than 18 million homes needed in the US by 2033, we expect new-home construction will be a major driver of Pro planned spend for the next decade. 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 $50bn.
“With its strong, customer-centric operating model, ADG has become an industry leader with best-in-class customer satisfaction scores from the top builders in the US. 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.”
ADG CEO Steve Margolius said: “We are thrilled for ADG to join forces with Lowe’s. 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, a home improvement company, serves an estimated 16 million customer transactions weekly across the US. With over $83bn in financial year 2024 sales, Lowe’s operates more than 1,700 stores and employs approximately 300,000 associates.
The North Carolina-based company plans to finance the acquisition with cash on hand.
The transaction, expected to close in the second quarter (Q2) of 2025, is subject to regulatory approvals and customary closing conditions.
Financial advisory roles have been filled by Centerview Partners and Greenhill for Lowe’s, with Covington & Burling providing legal advice. ADG’s financial advisors are RBC Capital Markets and Goldman Sachs, with Latham & Watkins as legal counsel.
In 2023, ADG expanded its portfolio by acquiring Peachtree Cabinet Distributors and GranCo Countertops.
