Lowe's Companies, Inc. announced it has reached an agreement to acquire Artisan Design Group (ADG) for $1.325 billion, marking a significant expansion of its professional services division.

The acquisition targets the rapidly growing new construction market, with Lowe's Chairman and CEO Marvin R. Ellison citing projections that 18 million new homes will be needed in the United States by 2033. This strategic move positions Lowe's to capture a larger share of the approximately $50 billion market for interior surface finishes.

ADG brings substantial assets to the partnership, including a nationwide network of over 3,200 specialized installers and established relationships with single-family and multifamily homebuilders and property managers. The company reported approximately $1.8 billion in revenue for fiscal 2024.

"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.," Ellison said. The acquisition will enhance Lowe's offering to its expanded pro customer base.

ADG CEO Steve Margolius expressed enthusiasm about joining Lowe's, noting that the combination of ADG's leading position in flooring, cabinets, and countertops with Lowe's scale and category breadth will support continued growth while providing more comprehensive services to builders and property managers.

The all-cash transaction is expected to close in the second quarter of 2025, pending regulatory approvals and satisfaction of other customary closing conditions.