Lowe’s Has Just Completed One of Its Biggest Billion-Dollar Acquisitions. Here Are the Details
Lowe's wants to cater more to professionals.
In a significant strategic move aimed at deepening its hold on the home improvement professional market, Lowe’s has officially completed one of its largest billion-dollar acquisitions, according to a company press release dated June 2. The North Carolina-based retailer announced the acquisition of Artisan Design Group (ADG) for $1.325 billion, marking a significant milestone in its ongoing effort to compete with rival Home Depot and expand its professional services portfolio.
This deal doesn’t just mark a new chapter for Lowe’s — it signals the company’s firm commitment to winning over homebuilders, contractors, and property managers with end-to-end service solutions.
Lowe’s Expands Into High-Touch Professional Design Services
Artisan Design Group is no newcomer to the interior design and home-building space. The company, which was previously owned by the private equity firm Sterling Group, employs more than 3,200 people and operates in 18 states. ADG specializes in the design, distribution, and installation of interior surface finishes such as flooring, tile, and countertops — critical components in large-scale construction and renovation projects.
“ADG has built an industry-leading position through consistent execution and outstanding customer service, earning strong customer satisfaction scores from the top homebuilders,” said Marvin R. Ellison, Lowe’s chairman, president, and CEO, in a statement accompanying the press release.
By bringing ADG under its umbrella, Lowe’s is stepping into a highly fragmented, $50 billion market where professional support and design execution remain crucial to customer success. It’s a smart move at a time when consumers may be delaying discretionary home projects, but large-scale developers continue to invest in infrastructure and housing.
Lowe’s Sharpens Focus on Pro Customers
This acquisition mirrors a broader industry trend. In 2024, Home Depot made headlines when it acquired SRS Distribution, a major supplier for professionals, for $18.25 billion. That blockbuster deal showcased how aggressively the two home improvement giants are investing in their Pro customer bases.
With this latest move, Lowe’s is signaling that it, too, is serious about this segment.
“This acquisition positions us to accelerate our growth in Pro planned spend,” Ellison emphasized, “and expand into an adjacent distribution channel in a highly fragmented, approximately $50 billion market.”
This isn’t just about products — it’s about services, scale, and execution. ADG’s ability to manage projects from fulfillment through installation helps Lowe’s offer a more comprehensive value proposition to Pro clients.
The Advisory Team Behind the Deal
As expected with a transaction of this size, both sides brought in heavyweight advisors to manage the process.
Centerview Partners served as the lead financial advisor to Lowe’s, with Greenhill (a Mizuho affiliate) also stepping in as a financial advisor. Covington & Burling LLP provided legal counsel for Lowe’s.
On the other side, ADG was advised by RBC Capital Markets, Goldman Sachs, and Robert W. Baird, with legal representation from Latham & Watkins LLP.
Lowe’s Earnings Dip — But Optimism Remains
The acquisition comes on the heels of a mixed Q1 2025 earnings report. Lowe’s reported sales of $20.93 billion for the quarter, slightly below the $20.94 billion forecasted by Wall Street and a decline from $21.4 billion in Q1 2024.
However, the company’s earnings per share (EPS) came in at $2.92, beating expectations of $2.88, though still short of the $3.06 recorded during the same period last year.
Ellison attributed the resilience to the company’s investments in customer experience and technology.
“Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe’s the #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power,” he said, according to a company press release.
Ellison also acknowledged that economic conditions — like tariffs and consumer hesitancy — are affecting the pace of big-ticket spending.
Holding Steady Through Economic Turbulence
Despite current headwinds, Lowe’s is maintaining its full-year sales guidance of between $83.5 billion and $84.5 billion. If the company hits the high end of that target, it will outperform last year’s $83.67 billion in revenue.
Lowe’s CFO Brandon Sink noted that part of the Q1 slowdown was driven by adverse weather in February. He also acknowledged that while customers remain financially healthy, many are cautious about taking on major home projects.
“Customers are still mainly sitting on the sidelines,” Sink said. But he added an optimistic note: “The good news is the trends aren’t getting any worse.”
Sink suggested that an “inflection point” is on the horizon — though not expected this fiscal year — when homeowners will resume discretionary projects and DIY spending.
Looking Ahead: Strategic Momentum for Lowe’s
This acquisition of ADG may represent a turning point for Lowe’s as it adapts to macroeconomic shifts and recalibrates its strategy to better serve professional and high-volume clients.
With over 1,700 stores, 300,000 associates, and more than $83 billion in annual revenue, Lowe’s is already a major player in the home improvement space. But with this latest billion-dollar acquisition now under its belt, the company is poised to diversify even further — and position itself for long-term growth in a post-DIY economy.
As the race to own the Pro market heats up, one thing is clear: Lowe’s isn’t just playing defense. It’s building for the future.
