Lowe's makes $1.3B acquisition of design distributor with SC ties (2025)

Lowe'sis taking its "never stop improving" motto to the next level with a $1.3 billion acquisition of a Texas-baseddesign distribution company.

The blue-branded home improvement chain entered into an agreement April 14 to acquireArtisan Design Group, a nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops. ADG supplies to national, regional and local homebuilders and property managers, as well as retailers.

In South Carolina, ADG products are sold in fourBuilders Wholesale Flooringstores in Summerville, Columbia, Myrtle Beach and Greenville, as well as anAtlanta West Carpetsstore in Piedmont.

According to Lowe's, the acquisition of ADG will expand the store's Pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market.

Marvin R. Ellison, Lowe's chairman, president and CEO, said with more than 18 million homes expected to be needed nationwide by 2033, new home construction will be a major driver of Pro.

"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," Ellison said in a statement.

Steve Margolius, ADG's CEO, added, "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."

Lowe's, which has 51 stores in South Carolina, will finance the acquisition with cash on hand. The transaction is expected to close in the second quarter of 2025, subject to receipt of requisite regulatory approvals and satisfaction of other customary closing conditions.

The major purchase comes less than a year after competitor Home Depotmade a similar acquisition of SRS Distribution for just over $18 billion in June 2024.

Home Depot said in a March 2024 press release that SRS will accelerate the company's growth with the residential professional customer, while also establishing The Home Depot as a leading specialty trade distributor across multiple verticals.

"SRS’s 2,500-plus professional sales force and 760-plus branch network across 47 states, together with its 4,000-plus truck fleet and jobsite delivery capabilities, will enable The Home Depot to extend its offering to residential specialty trade pros while better serving renovator/remodelers," the release said.

SRS has eight branches throughout South Carolina, including North Charleston, Summerville, Ridgeland, West Columbia, Columbia, Myrtle Beach, Spartanburg and Greenville.