MOORESVILLE, N.C. — Lowe’s Companies, Inc., a leading home improvement retailer, announced on April 14, 2025, that it has entered into a definitive agreement to acquire Artisan Design Group (ADG) for $1.325 billion in cash. The acquisition, aimed at bolstering Lowe’s professional customer offerings, will expand its reach into the $50 billion interior finishes market, positioning the company to capitalize on growing demand for new home construction. The deal is expected to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions.
ADG, headquartered in Dallas, Texas, is a nationwide provider of design, distribution, and installation services for interior surface finishes, including flooring, cabinets, and countertops. Serving national, regional, and local homebuilders and property managers, ADG operates 132 facilities across 18 states and employs over 3,200 specialized installers. In fiscal 2024, the company generated approximately $1.8 billion in revenue, driven by organic growth and 15 strategic acquisitions since 2018 under the ownership of private equity firm The Sterling Group.
The acquisition aligns with Lowe’s strategic focus on enhancing its Pro business, which caters to professional customers such as contractors and builders. With U.S. housing demand projected to require more than 18 million new homes by 2033, Lowe’s sees new home construction as a key driver of professional spending over the next decade. “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 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.”
ADG’s established relationships with homebuilders and its customer-centric model, which has earned high satisfaction scores from top U.S. builders, will integrate with Lowe’s extensive network of over 1,700 stores and $83.7 billion in fiscal 2024 sales. “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.,” Ellison added. “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.”
Steve Margolius, CEO of ADG, expressed optimism about the partnership. “We are thrilled for ADG to join forces with Lowe’s,” Margolius said. “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.”
Lowe’s will finance the acquisition with cash on hand, avoiding additional debt. The deal follows a trend of strategic acquisitions in the home improvement sector, as companies seek to diversify revenue streams amid fluctuating demand for do-it-yourself (DIY) projects. In June 2024, rival Home Depot acquired SRS Distribution, a building materials supplier, for $18.25 billion to strengthen its professional customer base. Lowe’s acquisition of ADG reflects a similar focus on capturing a larger share of the professional market, particularly in the fragmented interior finishes sector.
The acquisition comes at a time when Lowe’s is intensifying efforts to compete with Home Depot, the nation’s largest home improvement retailer. In February 2025, Lowe’s reported fourth-quarter revenues of $18.6 billion, surpassing Wall Street expectations, driven by strong performance in its professional and online segments. The company has also simplified its MyLowe’s Pro Rewards program to attract small and mid-sized contractors, achieving 30% penetration in the professional customer segment.
ADG’s operational footprint and expertise will enhance Lowe’s ability to serve homebuilders and property managers directly, creating a new distribution channel for its Pro offerings. Formed in 2016 through the merger of Floors Inc. and Malibu Floors, ADG has grown through acquisitions of companies like Kermans, Markraft Cabinets, and Nonn’s, establishing itself as a leader in interior finishes.
Financial and legal advisors are facilitating the transaction. Centerview Partners LLC and Greenhill, a Mizuho affiliate, are advising Lowe’s, with Covington & Burling LLP providing legal counsel. RBC Capital Markets and Goldman Sachs are advising ADG, with Latham & Watkins LLP as its legal advisor.
The acquisition is part of Lowe’s broader Total Home Strategy, which emphasizes digital expansion, professional customer engagement, and enhanced service offerings. As the company navigates a cautious DIY market, investments like ADG aim to position Lowe’s for long-term growth in a recovering housing market.
Lowe’s, a Fortune 50 company based in Mooresville, North Carolina, serves approximately 16 million customer transactions weekly and employs about 300,000 associates. The company supports communities through initiatives focused on affordable housing, community space improvements, skilled trade development, and disaster relief.
The Sterling Group, which has managed ADG since 2018, highlighted the company’s growth during its tenure. “Since initially partnering with co-founders Larry Barr and Wayne Joseph in 2018, Sterling has been proud to support ADG during a period of significant growth and expansion,” said Johann Friese, director at The Sterling Group.
As Lowe’s integrates ADG’s operations, the acquisition is expected to strengthen its competitive position in the home improvement industry, particularly in serving professional customers driving new home construction and remodeling projects.
