Atlanta based largest home improvement The Home Depot announced completion of its acquisition of Hughes Supply Inc, a leading distributor of construction, repair and maintenance products. In accordance with the terms of the agreement as announced on January 10, 2006, 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. Both companies have already built leadership positions in a range of markets, and the combination of the two will provide customers with a continuum of products and services from infrastructure through construction to lifetime maintenance.
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.
"Home Depot Supply and Hughes Supply are a great strategic fit, and this acquisition is an important element of our growth strategy to expand our presence in the $410 billion professional market," said Bob Nardelli, chairman, president & CEO of The Home Depot. "We plan to repeat in the professional space the same type of market transformation The Home Depot pioneered and executed in the do-it-yourself retail space. We know that joining forces with Hughes Supply, a great company with a proven leadership team, a solid supplier base and a reputation for excellent customer service, will help us reach our goal."
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