Lowe’s Companies announced it has entered into a definitive agreement to acquire Artisan Design Group (ADG) for $1.325 billion.
ADG is a nationwide provider of design, distribution, and installation services for interior surface finishes, including flooring, cabinets, and countertops, to national, regional, and local homebuilders and property managers.
With organic growth and targeted acquisitions extending its capabilities and footprint, ADG has built a leading position in the industry. With fiscal 2024 revenue of approximately $1.8 billion, a national network of over 3,200 specialized installers, and relationships with single-family and multifamily homebuilders as well as property managers, ADG will expand Lowe’s Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market.
Lowe’s will finance this deal with cash on hand. And the deal is expected to close in the second quarter of 2025, subject to receipt of requisite regulatory approvals and satisfaction of other customary closing conditions.
Advisors: Centerview Partners is acting as Lowe’s lead financial advisor. Greenhill (a Mizuho affiliate) is also acting as financial advisor to Lowe’s. Covington & Burling is acting as legal advisor to Lowe’s. RBC Capital Markets is acting as lead financial advisor to ADG. Goldman Sachs is also acting as financial advisor to ADG. Latham & Watkins is acting as legal advisor to ADG.
KEY QUOTES:
“With more than 18 million homes needed in the United States by 20331, 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. 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.”
- Marvin R. Ellison, Lowe’s chairman, president and CEO
“We are thrilled for ADG to join forces with Lowe’s. 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.”
- Steve Margolius, ADG’s CEO
