Jamie Spencer
In a strategic move to expand its presence in the home improvement sector, Lowe’s announced earlier this week that it has acquired Artisan Design Group (ADG) for $1.3 billion. This acquisition, nearly a year after its rival Home Depot made a similar move, is expected to bolster Lowe’s Pro business in the $50 billion interior finishes market.
About Artisan Design Group and Its Role in Lowe’s Strategy
Artisan Design Group, based in Dallas, Texas, is a leading provider of design, distribution, and installation services, specializing in flooring, cabinets, and countertops. The company operates 132 distribution, design, and service facilities across 18 states, with a dedicated workforce of over 3,200 personnel responsible for coordinating installations. With this acquisition, Lowe’s aims to enhance its offerings and strengthen its position in the home improvement market, particularly in the Pro sector.
Lowe’s Pro Business and the Expanding Interior Finishes Market
Lowe’s acquisition of ADG is strategically aligned with the company’s broader growth plans, particularly in the Pro business. “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 Marvin R. Ellison, Lowe’s chairman, president, and CEO. The acquisition is expected to expand Lowe’s total addressable market by approximately $50 billion, further positioning Lowe’s to capitalize on the growing demand for interior finishes in new home construction.
How Lowe’s Move Stacks Up Against Home Depot’s Acquisition
Lowe’s acquisition of ADG comes after its biggest competitor, Home Depot, made a significant move of its own. In June 2024, Home Depot acquired SRS Distribution for over $18 billion. SRS, a leader in the specialty trade Pro sectors including roofing, landscaping, and pools, complements Home Depot’s existing Pro capabilities. Ted Decker, Home Depot’s chair, president, and CEO, highlighted that SRS’s customer service and expertise would be key to driving value for the company’s customers and shareholders.
Next Steps for Lowe’s and the Future of the Acquisition
The acquisition of ADG is expected to close in the second quarter of 2025. This transaction is part of Lowe’s ongoing efforts to expand its reach in the home improvement market and further strengthen its Pro business. The acquisition positions Lowe’s to better compete in an increasingly competitive space as both Lowe’s and Home Depot continue to pursue growth opportunities in the home improvement sector.
