Lowe’s To Buy Fast-Growing Texas Company For $1.3B
By Jenna Martin – Managing Editor, Digital , Charlotte Business Journal
Lowe’s Cos. Inc. (NYSE: LOW) is making a $1.325 billion acquisition aimed at expanding its Pro business.
The Mooreville-based home-improvement giant said that it has reached a deal to purchase Dallas, Texas-based Artisan Design Group, which provides design, distribution and installation services of interior finish products to homebuilders and property managers. The deal was announced after market close.
ADG is a portfolio company of The Sterling Group, a middle-market private equity firm based in Houston.
Lowe’s said in a news release that it will fund the transaction using cash on hand. The deal, subject to regulatory approval and closing conditions, is expected to close in this year’s second quarter.
“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 CEO Marvin Ellison said in a statement. “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 had revenue of about $1.8 billion in fiscal 2024. Its services are focused around interior surface finishes such as flooring, cabinets and countertops.
The company was formed in 2016 by the merger of Floors Inc. and Malibu. It now operates 132 distribution, design and service facilities in 18 states, with more than 3,200 employees.
Previous
