Lowe’s Big Acquisition Pushes Them Further into Pro Business

With its $1.3 billion purchase of Artisan Design Group, the giant DIY retailer continues to expand its focus on trade customers.

Artisan Design Group, based in Dallas, operates nationwide and provides design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops to homebuilders and property managers. It has 132 distribution, design and service facilities with more than 3,200 employees across 18 states.

The seller was private equity firm the Sterling Group, and the terms of the deal, expected to close in the second quarter of the year, were not disclosed. Lowe’s, like its larger competitor Home Depot, has continued to expand its pro business as the DIY market remains challenged with high mortgage rates and a very soft housing market.

“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, Lowe’s chairman, president and CEO in announcing the deal. “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, ADG’s CEO. “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.”

ADG itself had been on an acquisition run, completing 15 purchases since Sterling bought it in 2018. “Sterling has been proud to support ADG during a period of significant growth and expansion,” said Johann Friese, director at The Sterling Group.

Image: Artisan Design Group

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