Home Depot buys back HD Supply for USD 8 billion

Home Depot announces the acquisition of HD Supply Holdings, a leading national distributor of maintenance, repair and operations (MRO) products in the multifamily and hospitality end markets. The acquisition is expected to position the home improvement retailer as a premier provider in the MRO marketplace in the U. S. and in Canada. HD was formerly owned by Home Depot. In 2007 the DIY retailer sold the wholesaler to the financial investors Bain Capital, Carlyle Group and Clayton Dubilier Rice. "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 USD 55 billion 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." Under the terms of the merger agreement, a subsidiary of The Home Depot will commence a cash tender offer to purchase all outstanding shares of HD Supply common stock for USD 56 per share, for a total enterprise value (including net cash) of approximately USD 8 bn. The acquisition is expected to be completed during Home Depot's fiscal fourth quarter, which ends on 31 January 2021.