Mooresville, N.C.—Lowe’s Companies recently entered into a definitive agreement to acquire Artisan Design Group (ADG)—a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring— from the Sterling Group, a private-equity interest. The deal is valued at $1.325 billion.
“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,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
Formed in 2016 by the merging of two entities—Floors, Inc. and Malibu Acceptance Corp.—ADG, headquartered in Dallas, currently operates 132 distribution, design and service facilities in 18 states. Through a combination of organic growth and a series of targeted acquisitions that extended its capabilities and footprint, ADG has built an industry-leading position. With fiscal 2024 revenue of approximately $1.8 billion, a national network of more than 3,200 specialized installers and long-standing relationships with single-family and multifamily homebuilders as well as property managers, ADG is expected to expand Lowe’s Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market.
“Our leading position in flooring, cabinets and countertops—combined with Lowe’s scale and category breadth—will allow us to continue on our growth trajectory while providing an even more differentiated and comprehensive offering to the builders and property managers we serve today,” explained Steve Margolius, Artisan Design Group CEO. “We are thrilled to join forces with Lowe’s.