Home improvement company Lowe’s recently made a large acquisition geared toward enhancing its professional builder market. The Sterling Group, a middle market private equity firm, announced that it has agreed to sell Artisan Design Group to Lowe’s for $1.3 billion.
The acquisition will expand Lowe’s Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion 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. 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 Marvin R. Ellison, chairman, president and CEO at Lowe’s. “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.”
ADG is a leading nationwide provider of design, distribution and installation services for interior surface finishes such as flooring, cabinets and countertops to local, regional and national homebuilders and property managers. Headquartered in Dallas, the company operates 132 distribution, design and service facilities and coordinates installation through more than 3,200 personnel across 18 states.
“We are thrilled for ADG to join forces with Lowe’s,” said Steve Margolius, CEO 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 transaction is expected to close in the second quarter of 2025.
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