The home retail industry has launched a new round of arms race, with Lowes acquiring Artisan Design for $1.33 billion
Lowe's announced the acquisition of Artisan Design Group for $1.33 billion, a deal that will help it expand its professional customer service sector. Artisan Design primarily provides sales and installation services for products such as flooring, cabinets, and countertops to residential builders, with projected revenue of $1.8 billion for fiscal year 2024. The transaction will be paid for with Lowe's cash on hand and is expected to be completed in the second quarter of 2025, subject to regulatory approval. This move marks a new round of competition in the home retail industry in the professional services sector
According to Zhitong Finance APP, American home improvement retailer Lowe's (LOW.US) announced on Monday that it has agreed to acquire Artisan Design Group from private equity firm Sterling Group for $1.33 billion.
This acquisition will help Lowe's expand its business footprint in the professional customer service sector, as the company and its competitor Home Depot (HD.US) are currently facing challenges due to a slowdown in demand for home renovation and construction activities.
Last year, Home Depot acquired building materials supplier SRS Distribution for $18.25 billion to expand its professional customer base. Artisan Design, headquartered in Dallas, Texas, primarily provides sales and installation services for products such as flooring, cabinets, and countertops to residential builders and property managers.
According to Lowe's statement, Artisan Design is expected to achieve revenue of $1.8 billion in fiscal year 2024, covering 18 states across the U.S. and employing 3,200 installation technicians. The transaction will be funded with Lowe's cash on hand and is expected to be completed in the second quarter of 2025, subject to regulatory approval.
Centerview Partners LLC serves as Lowe's chief financial advisor, while RBC Capital Markets acts as Artisan Design's chief financial advisor.
This acquisition marks a new round of arms race in the professional services sector among home retail giants—following Home Depot's multi-billion dollar acquisition last year, Lowe's is attempting to build a differentiated advantage in the existing market competition through vertical integration of installation service capabilities
