Home improvement retailer Lowe’s announced April 14 that it has agreed to acquire Artisan Design Group from private equity firm Sterling Group for $1.33 billion.

Based in Dallas, TX, ADG is a provider of design, distribution and installation services for flooring, cabinets and countertops, serving homebuilders and property managers. Formed in 2016 through the merger of two companies, ADG now operates 132 distribution, design and service facilities across 18 states.

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Lowe’s will fund the acquisition using existing cash. The deal is expected to close in Q2 2025.

Lowe’s boasted that ADG built a strong market position through acquisitions and organic growth. With 2024 revenue of approximately $1.8 billion and over 3,200 installers, it’s set to expand the Lowe’s Pro segment into what the company framed as a $50 billion distribution market.

“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,” Lowe’s Chairman, President and CEO Marvin Ellison said in the news release. “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.”

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With more than 1,700 home improvement retail stores, Lowe’s had 2024 revenue of $83 billion.

MDM’s Take

While this Lowe’s deal is a fraction of the scale of The Home Depot’s $18 billion purchase of SRS Distribution in mid-2024, it can be seen as at least a partial answer to it. Whereas SRS is helping Home Depot cater to the “complex pro” looking to buy related exteriors products in a one-stop-shop experience, ADG should likewise help Lowe’s offer adjacent products to pros, but in interiors.