Mooresville-based Lowe’s Companies Inc. announced Tuesday it has entered a definitive agreement to acquire Artisan Design Group (ADG) for $1.325 billion, aiming to expand its services for professional homebuilders and property managers.
Lowe’s, which has about 11,000 employees in the Charlotte region and operates more than 1,700 stores nationwide, posted over $83 billion in sales for fiscal year 2024.
ADG, a nationwide provider of interior surface design, distribution, and installation services, reported approximately $1.8 billion in revenue for fiscal year 2024.
Based in Texas, ADG has a national network of over 3,200 installers and longstanding partnerships with single-family and multifamily homebuilders, as well as property managers. The acquisition will allow Lowe’s to enter a new distribution channel in the roughly $50 billion interior finishes market, strengthening its competitive stance in the pro customer segment.
The acquisition comes as Lowe’s continues to compete with rival Home Depot for professional contractor market share.
“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. 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,” said Lowe’s CEO Marvin R. Ellison in a press release. “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 U.S. 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.”
Centerview Partners is serving as lead financial advisor to Lowe’s, while Covington & Burling LLP is acting as legal counsel. RBC Capital Markets and Goldman Sachs are advising ADG, with Latham & Watkins LLP as legal advisor.
The acquisition is expected to close in Lowe’s second fiscal quarter, pending regulatory approvals.
