Home Depot to Acquire HD Supply for $8.7 Billion
Atlanta, GA, November 17, 2020-The Home Depot has entered into a definitive agreement to acquire HD Supply.
Home Depot will pay about $8.7 billion, reuniting with a unit it sold off in 2007 as the home-improvement giant looks to beef up its ability to distribute industrial products amid the pandemic, reports the Wall Street Journal. “HD Supply is a wholesale distributor of electrical, plumbing, janitorial and other supplies. It has about 44 distribution centers in the U.S. and Canada. It booked sales of nearly $6 billion in its latest fiscal year, though it recently sold a construction unit that accounted for about half of its business.”
According to Market Insights analyst Santo Torcivia, “The acquisition will allow them to expand into the industrial distribution business like Fastenal, Grainger, etc., and other businesses.”
When Home Depot previously owned HD Supply, Creative Touch, now Interior Solutions, was the flooring arm of the business. HD divested of that business in 2016.
Home Depot's puchase of HD will have minimal impact in the flooring category. Industry pundits tell Floor Focus that if there is any impact at all, it will be in the multifamily sector.