Home-improvement retailer Lowe’s has acquired Artisan Design Group (ADG) for $1.325 billion.

Dallas-based ADG is a nationwide provider of design, distribution, and installation services for interior finishes, including flooring, cabinets, and countertops. The company operates 132 facilities across 18 states and generated revenue of $1.8 billion in fiscal 2024.

Lowe’s said ADG’s network of 3,200 specialized installations and relationships with builders and multifamily developers will expand the Lowe’s Pro offering into a new distribution channel.

What They’re Saying

Lowe’s chairman, CEO, and president Marvin Ellison: “With more than 18 million homes needed in the United States by 2031, 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. 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.”

ADG CEO Steve Margolius: “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.”

Going Deeper

The acquisition comes at a time both Lowe’s and competitor The Home Depot are attempting to expand their exposure to the Pro market.

Since Ellison became CEO in 2018, Lowe’s has taken numerous steps to enhance its Pro customer offering. At that time, the company’s pro penetration was less than 20%. Since then, Lowe’s has taken steps to stock and expand pro brands, improved service levels in stores, invested to ensure key SKUs are always stocked, and introduced a tool rental program for pros. The retailer introduced a pro loyalty program—which helped drive a level of stickiness among pro customers—as well as enhance online sales capabilities for pro customers.

For its part, The Home Depot has taken numerous steps to enhance its Pro customer offering, most notably through its $18.25 billion acquisition of SRS Distribution. The company has also rolled out a pro tool rental program, launched car and van delivery express options, enhanced delivery and fulfillment options for pro customers, and launched its B2B Home Depot Pro experience catered to the professional customer.