U.S. home improvement retailer Lowe's said on Monday it has agreed to buy Artisan Design for $1.33 billion from private equity firm Sterling Group.

The deal would help expand Lowe’s offering for its professional customers at a time when the company and its rival Home Depot are facing slower demand for home remodels and construction activity.

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

Dallas, Texas-based Artisan Design sells and provides installation services, including flooring, cabinets and countertops, to homebuilders and property managers.

Artisan made $1.8 billion in fiscal 2024 revenue and has 3,200 installers across 18 states, according to the statement by Lowe's.

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

Centerview Partners is acting as lead financial adviser to Lowe’s, and RBC Capital Markets is acting as lead financial adviser to Artisan Design.

Source: cnbc.com