Lowe’s is buying Artisan Design Group for $1.3B—Here’s why it matters

Lowe’s Companies, Inc. (NYSE: LOW) has announced a definitive agreement to acquire Artisan Design Group (ADG), a leading provider of design, distribution and installation services for interior finishes, in a transaction valued at $1.325 billion.

The acquisition, which was announced earlier this week, is expected to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions. Lowe’s will fund the transaction using cash on hand.

Headquartered in Dallas, Texas, ADG operates 132 facilities across 18 states and coordinates services through more than 3,200 specialized installers. The company supplies interior surface finishes—including flooring, cabinets and countertops—to national, regional and local homebuilders as well as property managers.

In fiscal year 2024, ADG generated approximately $1.8 billion in revenue. Over the past several years, it has expanded its national presence through both organic growth and 15 targeted acquisitions, many involving founder- or entrepreneur-owned businesses. ADG was formed in 2016 and has been backed by The Sterling Group, a private equity firm that initially partnered with ADG’s co-founders in 2018.

The acquisition aligns with Lowe’s strategic initiative to strengthen its Pro customer segment, which includes professionals such as contractors and property managers.

“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 Lowe’s chairman, president and CEO Marvin R. Ellison. “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.”

Ellison also praised ADG’s customer-focused approach and its strong relationships with top builders across the US, stating, “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.”

Artisan Design Group CEO Steve Margolius echoed the positive outlook, commenting, “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.”

Financial and legal advisory support for the transaction includes Centerview Partners LLC and Greenhill (a Mizuho affiliate) serving as financial advisors to Lowe’s, with Covington & Burling LLP acting as legal counsel. On ADG’s side, RBC Capital Markets is the lead financial advisor, with Goldman Sachs also advising. Latham & Watkins LLP is providing legal counsel to ADG.

Lowe’s, a Fortune 50 home improvement company, reported over $83 billion in sales for fiscal 2024 and operates more than 1,700 stores across the US. The company serves roughly 16 million customer transactions each week and employs approximately 300,000 associates.

The acquisition of Artisan Design Group is expected to enhance Lowe’s reach in the homebuilding and property management sectors while reinforcing its position in the Pro segment within the broader $50 billion market for interior finish services.

Featured Photo Attribution: Coolcaesar. License: CC BY-SA 3.0