Lowe's makes a billion-dollar acquisition to take over Home Depot: All we know so far
Lowe's has announced a major move to strengthen its position in the home improvement industry. On April 14, 2025, the company revealed its plans to acquire Artisan Design Group (ADG) for $1.33 billion. This purchase is aimed at helping Lowe’s to better serve professional contractors and compete more directly with Home Depot.
Based in Coppell, Texas, the Artisan Design Group functions as one of the top interior finishes providers through its portfolio of design, distribution, and installation operations. The company delivers its services to various customer segments, which include single-family builders and multi-family builders, along with property managers, and commercial contractors.
With a workforce of 3,200 installers operating across 25 states and annual revenue exceeding $1.8 billion in 2024, ADG has rapidly grown since its founding in 2016 through the merger of Floors Inc. and Malibu Floors.
Marvin R. Ellison, Lowe's chairman, president, and CEO, stated in a press release on April 14, 2025, that the acquisition will help the company advance its ongoing success while enhancing its “total addressable market by approximately $50 billion.”
"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. 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," he said.
He added:
"With its strong, customer-centric operating model, ADG has become an industry leader with best-in-class customer satisfaction scores from the top builders in the U.S. 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."
Steve Margolius, ADG's CEO, stated in a press release on April 14, 2025:
"We are thrilled for ADG to join forces with Lowe's. 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."
The acquisition will be funded through Lowe's existing cash reserves. The acquisition must receive necessary regulatory clearances and standard closing requirements before the transaction completes during the second quarter of 2025.
Lowe's and Home Depot target professional markets
The DIY home improvement sector's reduced activity since COVID-19 introduced new directions at Lowe’s and Home Depot for professional customers, who deliver stable purchasing patterns.
The decision by the brand to shift its focus to professional customers demonstrates an initiative against the rising competition from Home Depot as the home improvement company that has expanded its business for professional buyers.
A similar acquisition was announced by Home Depot with SRS Distribution in March 28, 2024, making it the biggest purchase in the company's history with a total value of $18.25 billion.
Both Lowe's and Home Depot are making significant investments to capture a larger share of the professional contractor market, recognizing the potential for growth in this segment. With this deal, Lowe’s is taking direct measures to better serve contractors and industry professionals while staying competitive with Home Depot.