Lowe's has made a bold play in the home improvement wars, announcing a $1.32 billion acquisition of Texas-based Artisan Design Group (ADG) to directly challenge Home Depot's grip on professional contractors. The deal, set to close by mid-202, targets the lucrative $5 billion interior finishes market as new home construction demands surge.
ADG operates design and distribution centers across states, specializing in flooring, cabinetry, and countertop installations for builders and property managers. With projected revenues of $1.8 billion, the acquisition expands Lowe's Pro services and adds over,20 installation experts to its network.
"New home construction will drive Pro spending for the next decade," said Lowe's CEO Marvin Ellison, citing a need for million additional U.S. homes by. The move mirrors Home Depot's purchase of SRS Distribution for $1.2 billion, intensifying competition for contractor loyalty.
The cash-funded deal positions Lowe's to capitalize on rebounding DIY demand and professional market growth, following a.2% same-store sales increase after nearly two years of declines. Analysts see this as a critical step to narrow Home Depot's market lead, which stood at 64% in.
