(Reuters) – Home Depot Inc HD.N said on Monday it would buy HD Supply Holdings Inc HDS.O in a deal valued at about $8 billion, setting itself up to regain control over the industrial material wholesaler after spinning it off over a decade ago.
The home improvement chain said it would offer $56 per share in cash to HD Supply shareholders, a near 25% premium to the stock’s last close. It expects to fund the deal through cash on hand and debt.
The company looks to expand its construction and maintenance goods business by acquiring HD Supply, one of the largest distributors of construction, industrial and maintenance supplies in North America.
HD Supply shares jumped 24.3% premarket.
Home Depot said the deal is expected to