The Home Depot logo. (PRNewsFoto/The Home Depot)
The Home Depot logo. (PRNewsFoto/The Home Depot)

Home-improvement retailer The Home Depot acquired HD Supply Holdings, a distributor of maintenance, repair, and operations (MRO) products in the multifamily and hospitality markets. Home Depot said the acquisition will help position the company as a “premier provider” in the MRO marketplace.

“The MRO customer is highly valued by The Home Depot, and this acquisition will position the company to accelerate sales growth by better serving both existing and new customers in a highly fragmented $55 billion marketplace,” Craig Menear, chairman and CEO of The Home Depot, said in a news release. “HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the U.S. and Canada.”

Under terms of the agreement, a subsidiary of Home Depot will commence a cash tender offer to purchase all outstanding shares of HD Supply common stock for $56 per share, for a total enterprise value of approximately $8 billion, according to Home Depot.

“We’re thrilled that our associates are joining the Home Depot team and that our customers will be able to benefit from a broader product assortment, expanded delivery options, and enhanced services nationally,” Joe DeAngelo, chairman and CEO of HD Supply, said in a news release. “We are confident that this will position both The Home Depot and HD Supply for continued growth and success in the MRO distribution space.”

The transaction is expected to be completed during The Home Depot’s fiscal fourth quarter, which ends January 31, 2021.