US home improvement retailer Home Depot has agreed to acquire HD Supply, a building products distributor, for $56 per share or about $8 billion in cash.

Based in Atlanta, HD Supply caters to the multifamily and hospitality end markets across North America with its maintenance, repair and operations (MRO) products.

It is said to have leading positions in the living space maintenance, repair and operations sector. The building products distributor has nearly 44 distribution centers across 25 US states and a couple of Canadian provinces.

Its acquisition is expected to help Home Depot become a premier player in the MRO marketplace.

Craig Menear – chairman and CEO of Home Depot, commenting on Home Depot acquisition of HD Supply, said: “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.

“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.”

Home Depot has 2,295 home improvement stores across the US, and also in Puerto Rico, US Virgin Islands, Guam, 10 provinces in Canada, and Mexico.

Commenting on Home Depot acquisition of HD Supply, Joe DeAngelo – chairman and CEO of HD Supply said: “We’re thrilled that our associates are joining the Home Depot team and that our customers will be able to benefit from a broader product assortment, expanded delivery options and enhanced services nationally.

“We are confident that this will position both The Home Depot and HD Supply for continued growth and success in the MRO distribution space.”

The deal, which is subject to regulatory approvals, tender of a majority of the shares of HD Supply common stock, and other customary closing conditions, is expected to be closed by 31 January 2021.

  Atlanta, Craig Menear, Georgia, HD Supply, Home Depot, Joe DeAngelo, Retail acquisition news, USA