November 18, 2020 By Anthony Capkun
November 18, 2020 – The Home Depot has entered into an agreement to acquire HD Supply Holdings Inc., a distributor of MRO (maintenance, repair and operations).
“The MRO customer is highly valued by The Home Depot, and this acquisition will position the company to accelerate sales growth by better serving both existing and new customers in a highly fragmented, $55-billion marketplace,” said Craig Menear, chair and CEO of The Home Depot.
HD Supply Canada describes itself as “a national supplier of [MRO] products, serving owners and managers of multi-family residential, hospitality, educational, and healthcare/retirement living properties”.
“HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the U.S. and Canada,” Menear added.
Under the terms of the agreement, a subsidiary of The Home Depot will commence a cash tender offer to purchase all outstanding shares of HD Supply common stock for $56 per share, for a total enterprise value (including net cash) of about $8 billion. The closing is subject to customary closing conditions, including regulatory approvals.
“The board and I believe the strategic acquisition by The Home Depot Inc. will create significant benefits for our customers, associates, and shareholders,” said Joe DeAngelo, chair & CEO of HD Supply. “We look forward to working together to deliver the safest, most dependable and innovative customer experience to the living space maintenance professional.”
In fiscal 2019, The Home Depot had sales of $110.2 billion and earnings of $11.2 billion.
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