Lowe's has announced it will acquire Artisan Design Group (ADG) for $1.3 billion in cash, in a strategic move to strengthen its professional customer segment. ADG, which generated $1.8 billion in revenue in fiscal year 2024, specialises in interior surface finishes, offering design, distribution, and installation services for flooring, cabinets, and countertops.
The acquisition is expected to close in Q2 2025, pending regulatory approval and customary conditions.
With a network of more than 3,200 installers, builders, and property managers, ADG enhances Lowe's capacity to serve the growing demand for housing across the United States. CEO Marvin Ellison noted that "more than 18 million homes" are needed in the U.S. by 2033, and that new home construction will be "a major driver of Pro planned spend for the next decade."
Lowe's expects the acquisition to increase its total addressable market by around $50 billion. This deal is part of the retailer's broader strategy to target the professional market, following its previous initiatives such as improved job site delivery and a simplified loyalty programme for contractors through MyLowe's Pro Rewards.
Lowe's reported flat year-over-year net sales in Q4 at $18.6 billion, with slight comparable sales growth of 0.2%, supported by strong performance in pro and online segments, holiday sales, and hurricane recovery. Full-year sales declined 3% to $83.7 billion, while net income dropped around 10% to $7 billion.
Ellison stated that the company is creating a "flywheel effect" by enhancing its pro offerings through better service, deeper inventory, trusted brands, and a robust digital experience.
Source: www.retaildive.com