Lowe’s Picks Up Artisan Design Group in Move To Expand Its Pro Business

Lowe’s has made a move that will likely make it more competitive with rival home improvement retailer Home Depot, according to USA Today, via its recent acquisition of Artisan Design Group (ADG). The acquisition, which will reportedly set Lowe’s back $1.3 billion, takes place nearly a year after Home Depot made a similar purchase — of SRS Distribution in June 2024 — and is expected to be finalized by the second quarter of this year.

“ADG is a leading 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,” an April 14 press release detailing the acquisition noted.

Lowe’s expects the move to bolster its Lowe’s Pro business, which it claims will allow it to enter a highly fragmented market valued at approximately $50 billion. ADG currently operates 132 distribution, design, and service facilities and delivers installation services across 18 states, employing 3,200 workers.

“We are thrilled for ADG to join forces with Lowe’s,” said Steve Margolius, CEO of ADG.

“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,” Margolius added.

For its part, Lowe’s also seemed enthusiastic over the prospects of the deal.

“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, the company’s chairman, president, and CEO.

“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,” he continued.

Lowe’s Deal With ADG Echoes Earlier Home Depot Tactic

This most recent pickup made by Lowe’s echoes Home Depot’s acquisition of SRS Distribution last year — a deal which cost Home Depot $18 billion to make.

SRS is focused in the landscaping, roofing, and pool installation and maintenance segments, and the deal was struck to complement Home Depot’s burgeoning Pro business, as USA Today outlined.