$8 Billion Deal: Home Depot Acquires HD Supply

After setting HD Supply free in an IPO back in 2013, Home Depot has now agreed to re-acquire the distributor of MRO products for multi-family and hospitality markets in a $8 billion all cash deal.

Home Depot will buy HD Supply at $56 a share, with the acquisition completed before January 31, 2021. The deal comes just days after there was speculation that Lowe’s may acquire HD Supply. Lowe’s held a press briefing last week to announced the rumors were not true.

Home Depot released its third-quarter earnings report Tuesday.

Here is the press release on the acquisition from HD Supply:

ATLANTA, Nov. 16, 2020 (GLOBE NEWSWIRE) — HD Supply Holdings, Inc. (HDS), one of the largest wholesale distributors in North America, today announced that The Home Depot, Inc. (HD), the world’s largest home improvement retailer, has entered into a definitive agreement to acquire HD Supply. Under the terms of the agreement, The Home Depot, Inc. has agreed to commence a tender offer, through a wholly-owned subsidiary, to acquire all of the outstanding shares of HD Supply common stock for $56 per share in cash. The Boards of Directors of both The Home Depot, Inc. and HD Supply have unanimously approved the terms of the agreement, and the Board of Directors of HD Supply has resolved to recommend that shareholders accept the offer, once it is commenced. The acquisition is structured as an all-cash tender offer for all outstanding issued common stock of HD Supply followed by a merger in which remaining shares of HD Supply would be converted into the same U.S. dollar per share consideration as in the tender offer. The acquisition is expected to be completed during The Home Depot, Inc.’s fiscal fourth quarter, which ends on January 31, 2021 and is subject to applicable regulatory approval and customary closing conditions.

“The Board and I believe the strategic acquisition by The Home Depot, Inc. will create significant benefits for our customers, associates, and shareholders,” stated Joe DeAngelo, Chairman and CEO of HD Supply. “We look forward to working together to deliver the safest, most dependable and innovative customer experience to the living space maintenance professional.”