Home Depot to buy back HD Supply in $8 billion deal

Home Depot said on Monday it would buy HD Supply Holdings in a deal valued at about $8 billion, setting itself up to regain control over the industrial materials wholesaler after spinning it off over a decade ago.

The top U.S. home improvement chain said it would offer $56 in cash for each share of HD Supply, a near 25% premium to the stock’s last close. HD Supply’s shares jumped 24.5% on the news.

With the deal, Home depot is looking to expand its reach into building utility and maintenance products, betting that the economic toll of the COVID-19 pandemic will force swathes of Americans to look for affordable housing.

“With a bolstered sales force and enhanced supply chain, we have no doubt Home Depot will be a more formidable player in the$55 billion maintenance, repair and operations market for years to come,” Jefferies analysts wrote.

Home Depot, which sold

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Home Depot to buy building products distributor HD Supply in $8 billion deal

The logo of Down Jones Industrial Average stock market index listed company Home Depot is seen in Encinitas, California April 4, 2016. REUTERS/Mike Blake/File Photo

(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

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Home Depot to Buy Former Unit HD Supply in $9.1 Billion Deal

(Bloomberg) — Home Depot Inc. agreed to buy building products distributor HD Supply Holdings Inc., reuniting the home-improvement retailer with its former subsidiary more than a decade after they split apart.

Home Depot will buy all outstanding shares for about $56 apiece, according to a statement Monday, representing a premium of about 25% over HD Supply’s closing price on Friday. With 162 million shares outstanding, the offer is valued at almost $9.1 billion. Including net cash, the deal has an enterprise value of about $8 billion, the companies said.

The acquisition brings back together two companies that used to be under the same roof and will give Home Depot more exposure to the professional contractor side of the business. Like do-it-yourself repairs, that segment has boomed during the pandemic as Americans want to improve the homes they’re spending more time in.



timeline: Contractor supplier spikes as Home Depot announces plan to buy it


© Bloomberg
Contractor supplier spikes as Home Depot announces

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During Covid-19, Home Depot Made Our Better Angels Shine

2020 has proven to be the most challenging, tumultuous year in modern American history. It has also been a year of learning. We have collectively learned that the vast majority of Americans – most of us — have been vulnerable and are hurting. We in business learned that business and society can no longer exist in segregated, separate spheres. While business has been in part, culpable for our society problems, business can and must lead the path forward to sustainable solutions. I, for one, am optimistic that business will chose the inclusive version of stakeholder capitalism because a good many businesses are already beginning to practice it and are fulfilling the needs of multiple stakeholders.

One such company is Home Depot
HD
where the loyal employees boast of having “orange running through their veins.” 

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