Lowe's Companies, Inc. to Acquire Artisan Design Group for $1.325B
Lowe's Companies, Inc. to Acquire Artisan Design Group
The culmination of a successful partnership with Sterling Group
The Sterling Group, a distinguished private equity firm, has reached an agreement to sell Artisan Design Group (ADG) to Lowe's Companies, Inc. (NYSE: LOW) for an impressive $1.325 billion. This acquisition comes as a testament to ADG's impactful position in the design and installation services of interior surface finishes, including flooring, cabinets, and countertops, catering to a broad spectrum of homebuilders and property managers throughout the nation.
Operating 132 distribution, design, and service facilities across various states, ADG employs over 3,200 personnel working diligently to meet the demands of its clientele. The partnership between Sterling and ADG commenced in 2018, focused on nurturing significant growth that has led to 15 successful acquisitions under Sterling’s mentorship. Johann Friese, a director at The Sterling Group, expressed pride in supporting ADG's transformation and acknowledges the company's commitment to excellence.
This move positions Lowe's to broaden its Pro offerings, tapping into a highly fragmented market valued at around $50 billion. Marvin R. Ellison, Lowe’s chairman and CEO, shared insights on the crucial demand for new housing, predicting a considerable drive towards Pro planned spending in the coming decade. He emphasized the importance of collaborations like this acquisition that expand Lowe's market reach and enhance its Pro customer base.
Steve Margolius, the CEO of ADG, expressed excitement about the merger, stating that joining forces with Lowe's strengthens ADG's dominance in flooring, cabinets, and countertops. The synergy between ADG’s innovative practices and Lowe's wide-reaching capabilities promises to create a unique and comprehensive service portfolio aimed at builders and property managers alike.
The anticipated closing of this transaction is set for the second quarter of 2025, hinging on necessary regulatory approvals and standard closing conditions. The financial landscape around this deal is supported by RBC Capital Markets and Goldman Sachs, serving as financial advisers to ADG during this pivotal transaction.
About Artisan Design Group
Founded in 2016 through the merger of two leading entities in the industry, Artisan Design Group specializes in providing top-notch design, distribution, and installation services for key interior finishes. Headquartered in Dallas, ADG has firmly established itself in 18 states, confirming its status as an industry leader.
About The Sterling Group
Established in 1982, The Sterling Group focuses on early-stage investments in the manufacturing, distribution, and industrial sectors. With a robust track record, Sterling has undertaken the buyout of 74 platform companies and a multitude of add-on acquisitions, amassing a staggering transaction value exceeding $25 billion. Currently, they manage around $9.4 billion in assets.
About Lowe's Companies, Inc.
Lowe's, a top-tier home improvement retailer, serves approximately 16 million customer transactions weekly throughout the U.S. With a fiscal year 2024 revenue surpassing $83 billion, the company operates over 1,700 stores, employing around 300,000 associates. Committed to community support, Lowe’s engages in various programs aimed at improving housing, enhancing community spaces, and fostering future skilled trades experts.
Frequently Asked Questions
What does the acquisition entail?
The acquisition involves Lowe's purchasing Artisan Design Group for $1.325 billion, expanding its Pro offerings significantly.
Who are the advisors involved in this deal?
RBC Capital Markets and Goldman Sachs are the lead financial advisors for Artisan Design Group regarding this transaction.
What does Artisan Design Group specialize in?
ADG focuses on design, distribution, and installation services for interior finishes, such as flooring, cabinets, and countertops.
When is the transaction expected to close?
The transaction is anticipated to finalize in the second quarter of 2025, pending necessary regulatory approvals.
How has The Sterling Group supported ADG?
The Sterling Group has facilitated significant growth for ADG, assisting in 15 acquisitions and enhancing its market position since 2018.
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