Home improvement retailer Lowe’s (LOW) has announced that it is buying privately held Artisan Design Group, known as ADG, for $1.33 billion.
Artisan Design is a leading provider of flooring, cabinets, and countertops to homebuilders and property managers across the U.S. In 2024, ADG had revenue of $1.80 billion and boasted a national network of over 3,200 specialized installers and long-standing relationships with homebuilders.
Lowe’s said the acquisition of Artisan Design Group will provide it with a new distribution channel in a $50 billion market. “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,” said Marvin Ellison, Lowe’s CEO.
New Home Builds
Lowe’s purchase of ADG moves it further into the market for new home builds and helps it expand beyond the home improvement and renovation market where it already has a strong position. “We are thrilled for ADG to join forces with Lowe’s,” said Steve Margolius, Artisan Design’s CEO.
Lowe’s is financing the deal with cash and the transaction is expected to close in the second quarter of 2025, subject to regulatory approvals. Lowe’s stock has declined 9% so far in 2025 amid a broader market downturn. Over the last 12 months, LOW stock is essentially flat (down 0.76%).
Is LOW Stock a Buy?
Lowe’s stock has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 12 Buy and eight Hold recommendations issued in the last three months. The average LOW price target of $280.50 implies 25.14% upside from current levels.
