Lowe’s completes $1.32 billion purchase of home pro service provider
Lowe's Companies Inc. is expanding the services it offers home builders and property managers.
The home improvement giant has completed its previously announced acquisition of Artisan Design Group (ADG), a nationwide provider of design, distribution and installation services for interior surface finishes to home builders and property managers, for $1.32 billion.
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With fiscal 2024 revenue of approximately $1.8 billion, ADG has a national network of over 3,200 specialized installers and long-standing relationships with single-family and multifamily homebuilders as well as property managers.
Based in Dallas, ADG operates 132 distribution, design, and service facilities in 18 states. Lowe's is financing the acquisition with cash on hand
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, such as access to merchandise, sports memorabilia, gift cards to support their business, volume discounts, and business tools.
"We are pleased to complete this transaction and officially welcome the talented ADG team to Lowe's," said Marvin R. Ellison, Lowe's chairman, president and CEO. "ADG has built an industry-leading position through consistent execution and outstanding customer service, earning strong customer satisfaction scores from the top homebuilders. This acquisition positions us to accelerate our growth in Pro planned spend and expand into an adjacent distribution channel in a highly fragmented, approximately $50 billion market."
Advisors
Centerview Partners LLC is acting as lead financial advisor to Lowe's. Greenhill, a Mizuho affiliate, is also acting as financial advisor to Lowe's. Covington & Burling LLP is acting as legal advisor to Lowe's. RBC Capital Markets is acting as lead financial advisor to ADG. Goldman Sachs and Robert W. Baird are also acting as financial advisors to ADG. Latham & Watkins LLP is acting as legal advisor to ADG.
With total fiscal year 2024 sales of more than $83 billion, Mooresville, N.C.-based Lowe's Companies Inc. operates more than 1,700 home improvement stores and employs approximately 300,000 associates.
