Lowe's makes one of its largest ever billion-dollar acquisitions

The retail chain is betting big on a growing business.

Jun 4, 2025 - 15:14

Lowe's makes one of its largest ever billion-dollar acquisitions

One of the most difficult problems a retailer must solve is differentiating itself from the competition.

In some cases, it's pretty easy to sell customers on your diversity.

Chick-fil-A, for instance, offers some pretty unbeatable sauce along with its famously fresh chicken.

Not many other fast-food restaurants offer such a consistently quality product, which is why you see cars lining up around the block during lunch and dinner hours.

Lululemon is another great example.

Try as other athletic apparel brands might, nobody can quite replicate that buttery soft material that its popular Align leggings and other stretchy products offer.

It's also how Lululemon gets away with charging about $100 for a pair of workout pants.

But many other retailers struggle to tell their customers how they're different, and why they deserve your business.

Lowe's bought Artisan Design Group for $1.3 billion.
Image source: Scott Olson/Getty Images

Home improvement retailers have a unique situation

One type of retail store that struggles to sell customers on differentiation is the home improvement space.

Two of the largest players in the industry, Home Depot (HD) and Lowe's (LOW) , are typically neck in neck when it comes to loyalty.

This is partly because they've just got the most locations.

More Home Depot & Lowe’s:

Home Depot has over 2,000 stores across the U.S., while Lowe's has over 1,700.

This means both of these retailers are reasonably easy to access, and with such a wide variety, beat out most smaller competitors.

But there's still an issue Home Depot and Lowe's must resolve.

That's how to remain competitive with each other — and avoid getting beaten out or falling to the wayside.

Lowe's makes a big deal

In 2024, Home Depot made its largest acquisition ever when it bought SRS Distribution of McKinney, Texas, for $18.25 billion.

The company provides goods and materials for home-improvement professionals and contractors, including roofing supplies, lumber, and plumbing.

But Lowe's is right behind Home Depot, also betting on making pros' jobs easier.

It has now completed its acquisition of Artisan Design Group for $1.325 billion.

Artisan Design Group, or ADG, was previously owned by private equity firm Sterling Group and had 3,200 employees spread throughout 18 states.

Now, Sterling Group has sold the professional interior design company to Lowe's as the home improvement retailer continues to bet big on large-scale projects.

ADG helps home builders carry out and oversee design projects from the fulfillment process all the way to installation.

“This acquisition positions us to accelerate our growth...and expand into an adjacent distribution channel in a highly fragmented, approximately $50 billion market," Lowe's CEO Marvin Ellison said.