Lowe’s agreement to acquire Artisan Design Group (ADG) for $1.325 billion marks a strategic move to expand its B2B ecommerce capabilities, with the acquisition deepening its presence in the professional construction and property management sectors.
ADG is a major player in the interior surface finishes market. It specializes in the design, distribution, and installation of flooring, cabinets, and countertops. The company operates 132 facilities across 18 states and generated approximately $1.8 billion in revenue in fiscal 2024. Its workforce includes more than 3,000 employees and over 3,200 independent installers, making it one of the largest service providers of its kind in the U.S.
Lowe’s is No. 11 in the Top 2000 Database, which ranks North America’s largest online retailers by annual ecommerce sales. The retailer is in the Hardware & Home Improvement category. Prior to the acquisition agreement, Digital Commerce 360 projected Lowe’s online sales will reach $11.48 billion in 2025.
Lowe’s ADG acquisition
Unlike traditional ecommerce companies focused on direct-to-consumer sales, ADG operates in the B2B space. It works directly with national, regional, and local homebuilders and property managers. And its business model is built on digital tools and service integration.
One example is its proprietary Design Central Solution, which allows customers to preview products and visualize installations in 360 degrees before making purchasing decisions. These are key capabilities for modern B2B buyers demanding efficiency and customization.
“New home construction will be a major driver of Pro planned spend for the next decade. The acquisition of ADG allows us to expand our addressable market by approximately $50 billion and strengthens our ability to serve Pro customers with full-service solutions,” said Lowe’s chairman and CEO Marvin Ellison.
The ADG acquisition also advances Lowe’s strategy of becoming a comprehensive B2B platform for building professionals. It would help the platform extend beyond product sales to include design services, digital ordering, and managed installation. As more builders turn to digital channels for procurement and project management, Lowe’s gains a ready-made infrastructure to meet that demand. This will positioning it as a full-cycle supplier in a segment long underserved by scaled ecommerce solutions.
The companies expect to close the transaction, which Lowe’s will finance with cash on hand, in the second quarter of 2025, pending regulatory approval. Once finalized, it will significantly increase Lowe’s digital footprint in B2B construction services, as the company seeks to capitalize on long-term trends in homebuilding, property development, and digitally enabled trade procurement.
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