Decisive agreement to acquire Lowe’s sign ADG for $1.32 billion
The Lowe company has signed a decisive agreement to acquire Artisan Design Group (ADG) for $1.32 billion to expand its professional services offering.
ADG, a US-based provider of interior design, distribution and installation services, will strengthen Lowe’s Pro division by entering a new distribution channel within the $50 billion market.
ADG is established through organic growth and acquisitions, with revenues of approximately $1.8 billion for fiscal year 2024.
Supported by a network of over 3,200 professional installers and supporting established relationships with home builders and real estate managers, the integration is expected to enhance Law’s position in the market.
Lowe’s Chairman, President and CEO Marvin R Ellison said: “With more than 18 million homes needed in the US by 2033, we expect New-Home Construction to be a major driver for Pro Planned Spend over the next decade.
“With a strong customer-centric operating model, ADG has become an industry leader from a top US builder with best-in-class customer satisfaction scores. We look forward to welcoming the ADG team to Lowe and strengthening its offering to our expanded professional customer base.”
“We’re committed to providing a great opportunity to help you,” said ADG CEO Steve Margolius. “We are excited to join forces with Lowe. Our key position in flooring, cabinetry and countertops combined with Lowe’s scale and category width will provide a more differentiated and comprehensive offering for today’s builders and property managers while continuing their growth trajectory.”
Lowe’s, a home improvement company, offers an estimated 16 million customer transactions each week across the US. With sales of more than $83 million for the fiscal year 2024, Lowe’s operates more than 1,700 stores and employs around 300,000 associates.
The North Carolina-based company will fund the acquisition with cash.
Transactions scheduled to close in the second quarter of 2025 (second quarter) will be subject to regulatory approval and customary closure terms.
The role of Financial Advisory is the role of Centerview Partners and Greenhill for Lowe, with Covington & Burling providing legal advice. The financial advisors at ADG are RBC Capital Market and Goldman Sachs, with Latham & Watkins as lawyers.
2023, ADG By acquiring, we expanded our portfolio Peachtree Cabinet Distributor and Granco Countertop.