Lowe’s Companies, Inc. has made a significant move in the home improvement sector by entering into a definitive agreement to acquire Artisan Design Group (ADG) for $1.325 billion. This acquisition, announced on or before April 17, 2025, positions Lowe’s to enhance its offerings in the competitive landscape of home construction and property management.
ADG is recognized as a leading nationwide provider of design, distribution, and installation services for interior surface finishes, including flooring, cabinets, and countertops. The company has established a robust presence in the market, generating approximately $1.8 billion in revenue during fiscal 2024. With a national network of over 3,200 specialized installers and a strong relationship with both single-family and multifamily homebuilders, ADG has built an impressive reputation in the industry.
Marvin R. Ellison, Lowe’s chairman, president, and CEO, emphasized the strategic importance of this acquisition. He stated, “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.” This expansion is crucial as Lowe’s seeks to enhance its Pro offerings and tap into a highly fragmented market valued at around $50 billion.
ADG operates 132 distribution, design, and service facilities across 18 states and employs over 3,000 individuals, including a vast network of independent installers. This extensive infrastructure will provide Lowe’s with a solid foundation to strengthen its B2B ecommerce capabilities and deepen its involvement in the professional construction and property management sectors.
In recent years, the home improvement landscape has seen considerable growth, particularly during the COVID-19 pandemic, when many homeowners turned to DIY projects. Both Lowe’s and its rival Home Depot capitalized on this trend, witnessing a surge in sales as consumers invested in home renovations and improvements. Following this trend, Lowe’s is now strategically positioning itself to continue capitalizing on the anticipated growth in new home construction.
The transaction is expected to close in the second quarter of 2025, pending regulatory approvals and other customary closing conditions. Lowe’s plans to finance the acquisition using cash on hand, ensuring a smooth transition as it integrates ADG into its operations.
Ellison expressed excitement about the merger, stating, “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.”
Steve Margolius, CEO of ADG, also shared his enthusiasm, saying, “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.”
Lowe’s, which ranked No. 11 in the Top 2000 Database for North America’s largest online retailers by annual ecommerce sales, is well-positioned to leverage ADG’s capabilities to further enhance its digital offerings. Digital Commerce 360 has projected that Lowe’s online sales will reach $11.48 billion in 2025, reflecting the growing importance of e-commerce in the home improvement sector.
As the market evolves, Lowe’s aims to transform its business model to meet the demands of modern B2B buyers who prioritize efficiency and customization. ADG’s proprietary Design Central Solution, which allows customers to visualize installations in 360 degrees before making purchasing decisions, exemplifies the kind of innovative solutions Lowe’s seeks to offer its professional clients.
This acquisition not only strengthens Lowe’s position in the home improvement market but also aligns with broader trends in the industry. As more builders turn to digital channels for procurement and project management, Lowe’s is poised to meet that demand with a ready-made infrastructure that supports full-cycle supplier capabilities.
In light of recent industry trends, Lowe’s acquisition of ADG can be seen as a response to the competitive pressures in the home improvement sector, particularly following Home Depot’s significant acquisition of SRS Distribution for $18 billion in 2024. By bolstering its service offerings and expanding its reach into the professional market, Lowe’s is making a bold statement about its commitment to growth and innovation in the coming years.
Overall, this acquisition represents a strategic investment in the future of Lowe’s as it seeks to enhance its competitive edge and adapt to the evolving needs of its customers in the home improvement industry. With the deal expected to close soon, both companies are gearing up for a new chapter that promises to reshape the landscape of home design and construction services.
