The Home Depot® has finalized its acquisition of Hughes Supply, Inc., Orlando, FL, a leading distributor of construction, repair and maintenance products.
The Home Depot acquired Hughes Supply for aggregate consideration of $3.51 billion, including the payment of $46.50 per outstanding share, and the assumption of $325 million in net debt.
Hughes Supply and Home Depot Supply will be combined to create a division that serves business-to-business customers, including home builders, professional contractors, municipalities and maintenance professionals.
The close of the Hughes Supply transaction marks the largest acquisition ever by The Home Depot, more than doubling the size of Home Depot Supply. The newly combined organization has more than 20,000 employees in more than 900 locations with projected 2006 combined sales approaching $12 billion.
Hughes Supply was founded in 1928. It operates more than 500 outlets in 40 states. The integration adds to Home Depot Supply's strong positions in waterworks, non-industrial facility maintenance, professional construction supply and plumbing, while adding new platforms in electric utilities, industrial pipes, valves and fittings, and electrical products distribution.
Joe DeAngelo, executive vice president of Home Depot Supply, says Home Depot Supply plans to become the world’s largest diversified wholesale distributor, with more than 1,500 locations, and to grow sales to between $23-$28 billion by 2010.
"The Hughes Supply acquisition provides scale to accelerate the execution of Home Depot Supply's strategy and immediately gives us an unparalleled national footprint of more than 900 locations," says DeAngelo.
Home Depot Supply’s aggressive plans include:
- expanding every business into new localities, and increasing productivity of every location by adding product adjacencies
- establishing a portfolio of “pro platforms” covering every phase of execution from infrastructure to construction to lifetime maintenance
- delivering compelling customer productivity by building upon great established relationships in each market that are enhanced by customer-facing digital tools
- ensuring low-cost provider status by leveraging the entire supply chain of The Home Depot.
Visit www.thehomedepotsupply.com or www.hughessupply.com for more information.