Lowe's gets more heavily involved in the Pro business. The US DIY store operator acquires Maintenance Supply Headquarters, a distributor of maintenance, repair and operations (MRO) products to the multifamily housing industry, for a total transaction value of USD 512 mio. Based in Houston, Texas, Maintenance Supply Headquarters operates 13 distribution centers serving customers in 29 geographic areas, primarily in the western, southeastern and south central US, with a portfolio of more than 5 300 products and value-added services for maintaining and renovating multifamily properties.
Purchasing Maintenance Supply Headquarters is, from Lowe's point of view, an important step in the strategy of the home improvement retailer to deepen and broaden its relationship with the Pro customers and better serve their needs. The company is convinced that when combined with Lowe's November 2016 acquisition of Central Wholesalers, a MRO distributor in the Mid-Atlantic and Northeast, this acquisition will substantially expand Lowe's ability to serve the multifamily housing industry.
Upon the close of the transaction, Lowe's combined multifamily MRO business will include 16 distribution centers in attractive regions throughout the nation generating more than USD 400 mio in annual sales.
Michael A. (Mike) Tummillo, recently appointed senior vice president of Lowe's pro sales organisation, will oversee Maintenance Supply Headquarters and Central Wholesalers. He will also lead Lowe's Pro Services business and Alacrity Services, a supplier of home restoration and repair services.