The home-improvement retailer will pay $56 per share for HD Supply’s stock, totalling the overall deal at around $8bn.
Home Depot actually sold HD Supply Holdings 13 years ago and now the retail giant is looking to buy HD Supply Holdings, a national distributor of maintenance, repair and operations (MRO) products, back again.
“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 $55bn marketplace,” said Craig Menear, Chairman and CEO of The Home Depot. “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.”
The deal is expected to be completed during the retailer’s fourth quarter and will be funded through cash on hand and debt.
