2 weeks Ago By Sean McPolin
A retail giant is set to pump more than a billion dollars into the business in an effort to take on competitors such as Home Depot . Bosses at Lowe's - which will close for 24 hours this weekend - recently announced a new $1.3 billion deal, which is expected to go through in the coming months, with the goal of taking on the industry's top dogs.
Executives at the North Carolina based business revealed they have bought the Artisan Design Group (ADG), a company which specializes in designing and installing cabinet and worktop units. It's not known exactly when a deal will be completed but it's thought it will be done by the end of the year. Chief executive Marvin R.
Ellison said in a statement: “The acquisition of ADG allows us to build on our momentum with Pro planned spend and is expected to expand our total addressable market by approximately $50 billion. Ellison went on the praise the design firm for its work and reputation, claiming the company was already recognised as an "industry leader". Artisan Design Group provides design, distribution and installation services and the company works with home builders and property managers.
ADG has more than 150 distribution and design sites and the company works with thousands of contractors. As a result of the deal, distribution sites for the group will be in the Lowe's supply chain network. It has left many experts wondering what the impact of the takeover will be.
It's also unclear if there will be any job implications or lay offs as a result of the move, The Sun reports . The deal comes just months after it was announced by Home Depot chiefs that they bought SRS Distribution for more than $18 billion. SRS Distribution sells supplies to workers in the roofing and landscaping sectors.
After the purchase was complete it hit headlines due to the fact the most Home Depot had spent on a buyout before was around $8 billion - meaning the most recent takeover was a whopping $10 billion more than they had previously spent. It's been suggested the move from Lowe's bosses has been done with the hope that the takeover will help boost the company's Pro business element. Lowe's Pro is a subscription based model designed to businesses.
Subscribers can calculate the costs of their materials, score bulk savings, and take advantage of fast delivery services. Lowe's Pro customers can also get their supplies in one place and can earn rewards for their purchases. They can earn points, which can be converted into money or exclusive rewards.
For example, if a shopper racks up 100 points, then it equates to a dollar in so-called Lowe's Money. Lowe's Pro customers can save up to 5% on their purchases every day.They can also take advantage of a 365-day return policy.
New subscribers can also get 0% interest for 60 days..
