Lowe’s is set to strengthen its footprint among professional contractors with the acquisition of Artisan Design Group for $1.32 billion.
The home improvement retailer has been sharpening its focus on trade customers and the purchase of ADG marks a significant step in broadening its reach in the professional segment.
Based in Dallas, ADG provides interior surface design, distribution and installation services, including flooring, cabinetry and countertops, for residential developers and property managers across the US.
“We are thrilled for ADG to join forces with Lowe’s,” said Steve Margolius, CEO of 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.”
ADG operates 132 sites across 18 states and maintains a workforce of over 3,200 specialized installers.
In fiscal 2024, it generated approximately $1.8 billion in revenue.
The company’s long-standing relationships with homebuilders are expected to provide Lowe’s with a strong foothold in the construction supply chain.
The move comes as Lowe’s continues to invest in its Pro business. Recent updates to its loyalty programme introduced new features tailored to the needs of trade professionals.
“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,” added Marvin Ellison, chairman, president and CEO 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.”
The transaction is scheduled to close in Q2 2025.
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