The home improvement landscape exploded during COVID and both Home Depot and Lowe’s took advantage.
Just last year Home Depot made a massive move by acquiring SRS Distribution, a company that provides goods and materials for home-improvement contractors, like landscaping tools, roofing supplies, lumber, and pool materials, for $18 billion. A year later, Lowe’s is making a similar move in order to compete with its bitter rival.
The retailer announced it’s buying Artisan Design Group for $1.325 billion. The company “provides design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to national, regional and local homebuilders and property managers.”
A Lowes store in the Brooklyn borough of New York, US, on Thursday, Aug. 15, 2024.
“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,” Lowe’s chairman, president and CEO Marvin R. Ellison said in a statement.
“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.”
Lowe’s announced the deal will be financed with cash on hand and is expected to close in the second quarter of the calendar year.
