FOLLOW US

– Lowe’s Companies, Inc. (NYSE: LOW) announced today that it has entered into a definitive agreement to acquire Artisan Design Group (ADG), a leading provider of interior surface finishing services, for more than $1.3 billion. The acquisition, guided by Covington & Burling LLP, is set to significantly enhance Lowe’s professional services, known as Lowe’s Pro, which serves the needs of homebuilders and property managers across the U.S.

Artisan Design Group, advised by Latham & Watkins LLP, has built a strong reputation as an industry leader in flooring, cabinets, and countertops, providing a comprehensive suite of services to homebuilders and property managers. In fiscal year 2024, ADG generated approximately $1.8 billion in revenue.

Marvin R. Ellison, Lowe’s Chairman, President, and CEO, emphasized the strategic importance of the acquisition. “ADG’s national network of over 3,200 specialized installers and its strong, customer-centric operating model have made it an industry leader, with top customer satisfaction scores from the leading builders in the U.S. As we face a projected need for more than 18 million homes in the U.S. by 2033, this acquisition positions Lowe’s to play a pivotal role in the future of new home construction. It is expected to expand our total addressable market by approximately $50 billion,” Ellison stated.

Steve Margolius, CEO of Artisan Design Group, expressed his enthusiasm about the merger. “We are thrilled to join forces with Lowe’s. Our leadership in flooring, cabinets, and countertops, combined with Lowe’s scale and extensive product offerings, will allow us to continue on our growth trajectory and provide even more value to the builders and property managers we serve,” Margolius said.

The deal is expected to close in the second quarter of 2025, with Lowe’s financing the acquisition using cash on hand.

Lowe’s, which reported fiscal year 2024 sales exceeding $83 billion, has consistently focused on growing its Lowe’s Pro services to meet the increasing demand from professional customers. The acquisition of ADG aligns with Lowe’s long-term growth strategy and enhances its ability to deliver comprehensive solutions to the expanding home improvement market.

“We look forward to welcoming the ADG team to Lowe’s,” added Ellison. “Together, we will enhance our offering to an expanded Pro customer base, continuing to drive innovation and excellence in the industry.