HD Supply Holdings Inc. (Nasdaq: HDS) on Monday announced that it is being acquired by home improvement retailer The Home Depot Inc. for $56 per share, or $8.7 billion.
The companies’ boards of directors have unanimously approved the terms of the agreement, and the board of HD Supply has resolved to recommend that shareholders accept the offer, once it is commenced.
The acquisition is structured as an all-cash tender offer for all outstanding issued common stock of HD Supply followed by a merger in which remaining shares of HD Supply would be converted into the same U.S. dollar per share consideration as in the tender offer. The acquisition is expected to be completed during The Home Depot, Inc.’s fiscal fourth quarter, which ends on January 31, 2021, and is subject to applicable regulatory approval and customary closing conditions.
“The board and I believe the strategic acquisition by The Home Depot, Inc. will create significant benefits for our customers, associates, and shareholders,” said Joe DeAngelo, chairman and CEO of HD Supply. “We look forward to working together to deliver the safest, most dependable and innovative customer experience to the living space maintenance professional.”
Added Craig Menear, chairman and CEO of The Home Depot: “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. 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.”
Goldman Sachs & Co. LLC is acting as financial advisors and Jones Day is acting as legal advisor to HD Supply in connection with the transaction.
Home Depot sold HD Supply to private equity in 2007, and HDS went public in 2013. Look for more on this deal at the MDM Blog.