Giant hardware chain Lowe’s is purchasing Dallas-based interior design company Artisan Design Group (ADG) in a deal valued at over $1 billion.
The retailer announced it will acquire ADG for $1.325 billion. Lowe’s says it will finance the deal with existing cash on hand, with the transaction expected to close during the second quarter of 2025.
Lowe said the acquisition would complement the company’s existing offering, pointing to ADG’s extensive nationwide network.
“With fiscal 2024 revenue of approximately $1.8 billion, a national network of over 3,200 specialized installers and long-standing relationships with single-family and multifamily homebuilders as well as property managers, ADG will expand Lowe’s Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market,” Lowes said in an April 14 press release.
Marvin R. Ellison, Lowe’s chairman, president, and CEO, pointed to ADG’s reputation as one of the benefits of folding the Dallas-based design firm into the hardware chain.
“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,” said Ellison.
ADG’s CEO Steve Margolius echoed Ellison’s sentiment.
“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,” said Margolius.
ADG, which was formed in 2016, operates 132 distribution, design, and service facilities across 18 states. Mooresville, North Carolina-based Lowe’s operates more than 1,700 locations and employs around 300,000 associates.