BY Richard Summerfield
Home improvement retailer Lowe’s has announced it is to acquire Artisan Design Group in a deal worth $1.325bn.
According to a statement announcing the deal, Lowe’s will finance the acquisition with cash on hand. The transaction is expected to close in the second quarter of 2025, subject to receipt of requisite regulatory approvals and satisfaction of other customary closing conditions.
Artisan Design Group is headquartered in Dallas, Texas, and operates 132 distribution, design and service facilities. The company is a nationwide provider of design, distribution and installation services for interior finishes, including flooring, cabinets and countertops. The group coordinates installation through over 3200 personnel across 18 states. It recorded fiscal 2024 revenue of around $1.8bn. Lowe’s believes Artisan’s network of specialised installations and relationships with builders and multifamily developers will expand the Lowe’s Pro offering into a new distribution channel.
“With more than 18 million homes needed in the United States by 2031, 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 chief executive of 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. 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.”
“We are thrilled for ADG to join forces with Lowe’s,” said Steve Margolius, chief executive of Artisan Design Group. “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.”
The acquisition of the Artisan Design Group is part of Lowe’s wider strategy to target professional customers. Last year, the company laid out a plan to capture more professional spending and grow the segment, which included expanding jobsite delivery for large orders.
Since Mr Ellison became chief executive of Lowe’s in 2018, the company has taken numerous steps to enhance its professional customer offering. At that time, the company’s professional penetration was less than 20 percent. Since then, Lowe’s has taken steps to stock and expand professional brands, improve service levels in stores, invest to ensure key stock keeping units are always stocked, and introduce a tool rental programme for professionals.
News: Home improvement retailer Lowe's to buy Artisan Design for $1.33 billion