Lowe’s to acquire Artisan Design Group for $1.325 billion

HOUSTON - The Sterling Group, a private equity firm, has announced the sale of Artisan Design Group (ADG), a provider of design and installation services for interior finishes, to Lowe’s Companies, Inc. (NYSE: LOW) for $1.325 billion. The agreement, revealed today, marks the end of Sterling’s partnership with ADG which began in 2018. Lowe’s, with a market capitalization of $125.6 billion and a "GOOD" financial health score according to InvestingPro, continues to demonstrate strong market positioning.

Dallas-based ADG is recognized for its distribution and installation of flooring, cabinets, and countertops, serving national and regional homebuilders and property managers. With 132 facilities and over 3,200 personnel in 18 states, ADG has seen substantial growth through 15 acquisitions during Sterling’s tenure. This acquisition complements Lowe’s existing operations, which generated $83.7 billion in revenue over the last twelve months.

Lowe’s, a leading home improvement company, aims to leverage ADG to enhance its Pro offerings and tap into an approximately $50 billion market. Marvin R. Ellison, Lowe’s chairman, president and CEO, anticipates the acquisition will significantly expand the company’s addressable market, citing a demand for over 18 million homes by 2033.

Steve Margolius, CEO of ADG, expressed enthusiasm about joining Lowe’s, highlighting the opportunity for continued growth and improved service offerings for their customers. The transaction is set to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions.

RBC Capital Markets and Goldman Sachs are serving as financial advisors to ADG, with Latham & Watkins LLP as legal advisor.

This acquisition aligns with Lowe’s strategy to cater to professional customers and capitalize on the ongoing need for new home construction. The company, headquartered in Mooresville, N.C., operates more than 1,700 stores and reported over $83 billion in sales for the fiscal year 2024.

The press release includes forward-looking statements subject to risks and uncertainties that could affect the anticipated benefits of the merger. It emphasizes that past performance is not indicative of future results, and all investments carry the risk of loss.

The information for this article is based on a press release statement from The Sterling Group.

In other recent news, Lowe’s Companies Inc. announced a quarterly cash dividend of $1.15 per share, set to be paid in May 2025. The company reported over $83 billion in sales for the fiscal year 2024, maintaining its position as a leading home improvement retailer. RBC Capital Markets recently adjusted Lowe’s stock price target to $285, citing weather-related impacts on first-quarter guidance but maintaining a Sector Perform rating. Meanwhile, Cowen analysts held a Hold rating with a $270 price target, noting Lowe’s strong fourth-quarter performance and growth in the professional contractor segment. DA Davidson also maintained a Neutral rating with a $270 price target, highlighting Lowe’s positive comparable store sales for two consecutive quarters. Additionally, Lowe’s has partnered with Mesa, offering cardmembers up to $120 in annual statement credits through the MyLowe’s Rewards program. This partnership aims to enhance value for homeowners by integrating Mesa’s card benefits with Lowe’s loyalty program. These developments reflect Lowe’s ongoing strategies and market positioning amidst fluctuating economic conditions.

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