Lowe’s bets big on home improvement professionals with $1.32 billion acquisition

Lowe’s operates more than 1,700 stores.

Lowe’s Companies is expanding its professional contractor (Pro) offerings into a new distribution channel.

The home improvement giant has agreed to acquire Artisan Design Group for $1.32 billion. ADG is a leading nationwide provider of design, distribution and installation services for interior surface finishes — including flooring, cabinets and countertops — to national, regional and local homebuilders and property managers. 

“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,” said Marvin R. Ellison, chairman, president and CEO, Lowe’s. “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. 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.”

The deal comes as Lowe’s has been focused on enhancing its Pro business, including rolling out an updated version of its Pro loyalty program. The enhanced program offers new features and functions that Lowe’s says are often used by industry professionals.