Lowe's $1.3B Deal To Buy Artisan Design Boosts Retail Investor Enthusiasm For Home Improvement Firm

Home improvement retailer Lowe's Companies, Inc (LOW) is acquiring Artisan Design Group from private equity firm Sterling Group for $1.33 billion.

Lowe's announced the definitive deal after the markets closed on Monday, and its shares were little changed in after-hours trading, although retail investor sentiment was highly positive.

The Artisan deal expands Lowe's offering to its professional customers. The company said it was now targeting a total addressable market of about $50 billion.

Artisan Design offers design, distribution, and installation services for interior finishes such as flooring, cabinets, and countertops to home builders and property managers.

The company, which is headquartered in Dallas, Texas, generated about $1.8 billion in revenue in the fiscal year 2024.

"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," chairman and CEO Marvin Ellison said in a statement.

The company will fund the deal with cash on hand, with the transaction expected to close in the second quarter of 2025, subject to approvals.

Last year, Home Depot acquired building materials supplier SRS Distribution in an $18.25 billion deal to broaden its professional customer base.

On Stocktwits, retail sentiment for Lowe's held in the 'extremely bullish' territory, unchanged from the previous day. The message volume was high.

One user said integrating Artisan's 132 facilities into "Lowe's debt-laden balance sheet" will test the company's execution prowess.

LOW shares are down 9.2% year to date.

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