Home Depot to Acquire HD Supply in $8B Deal
Home Depot announced on Monday that it plans to buy HD Supply for about $8 billion, Yahoo! Finance reported. This would set the home improvement chain up to regain control over the industrial materials wholesaler after selling it over 10 years ago to Bain Capital, Carlyle Group, and Clayton, Dubilier and Rice.
Home Depot is looking to expand its reach into building utility and maintenance products with this deal. It's betting that the economic toll of the COVID-19 pandemic will force many families to turn to affordable housing. HD Supply is known for selling construction materials, appliances and other industrial goods for business buildings and multifamily properties.
Total Retail's Take: Home Depot, the top home improvement retail chain in the U.S., is looking to further strengthen its business with the acquisition of HD Supply. This isn't the only strategic move Home Depot has made as a result of the COVID-19 pandemic. In the summer, the retailer also invested in its supply chain by hiring over 1,000 employees and adding new distribution centers. These investments are setting up Home Depot for a strong next few years, both online and offline, as more Americans downsize to affordable housing and make home improvements. While many retailers have been negatively impacted by the coronavirus, Home Depot has seen its business boom. It recently reported that its Q3 same-store sales increased 24 percent. With HD Supply soon to be in the fold, those numbers may very well increase.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.