Lowe's to Acquire Artisan Design Group for $1.33B

Lowe's announced on Monday it has agreed to buy Artisan Design Group for $1.33 billion from private equity firm Sterling Group. The deal would help expand Lowe's offering for its professional customers at a time when the company and its rival Home Depot are facing slower demand for home remodels and construction activity. Artisan Design sells and provides installation services, including flooring, cabinets and countertops, to homebuilders and property managers. It generated $1.8 billion in fiscal 2024 revenue and has 3,200 installers across 18 states, according to the statement by Lowe's.

Total Retail's Take: This move by Lowe's aligns with its goal to grow its pro/contractor business, the smaller of its two primary segments (with DIYers being the other). Furthermore, it mirrors what the home improvement retailer's chief rival, The Home Depot, did last year with its acquisition of building materials supplier SRS Distribution $18.25 billion. Investing in expanding their pro customer bases, particularly at a time of economic uncertainty when consumers (i.e., DIYers) may be pulling back on larger home improvement projects, through strategic acquisitions is a prudent strategy for the leading home improvement retailers.

“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 CEO Marvin R. Ellison in a company press release. "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."