Home Depot to Add Contractor Design-Oriented Distributor - Modern Distribution Management

Home Depot to Add Contractor Design-Oriented Distributor

Construction Resources will allow Home Depot to expand the capabilities it offers professional contractors, a target market for the retailer.

On Nov. 20, do-it-yourself retail giant The Home Depot announced it has entered into a definitive agreement to acquire International Designs Group, a platform company that owns and operates surface, appliance, and architectural specialty products distributor Construction Resources and other design-oriented subsidiaries.

Construction Resources serves professional contractors — a target market for Home Depot and one that has outperformed the DIY segment in recent quarters — focused on renovation, remodeling, residential home building and multi-family.

“Almost all Pros interact with The Home Depot, but their level of engagement varies based on the complexity of their projects. We’re building capabilities to ensure we can serve all Pros across all their project needs – whether we’re the last stop on the way to the job site, or their first consideration when building a project design,” said Ted Decker, Chair, President and CEO of The Home Depot in a news release. “Construction Resources helps us accelerate our Pro growth opportunity with a successful showroom model, an exceptional sales force, and proven, long-term relationships with renovator, remodeler and residential new-construction Pros.”

The acquisition combines Construction Resources’ expertise in complex, cross-category professional projects with The Home Depot’s scale, product authority and distribution expertise, company officials said. With showrooms across the East Coast and Southeast, Construction Resources allows The Home Depot to expand the capabilities it offers Pro customers, many of whom rely on showrooms as part of their consultative approach to complex renovation and remodel jobs.

The Pro spend represents a $475 billion addressable market, and The Home Depot is focused on capturing a larger share by building capabilities to serve Pros of all sizes, company officials said. On MDM Premium, Senior Editor Vesna Brajkovic details how the retailer plans to serve the untapped contractor market typically served by wholesale distributors.

The Home Depot agreed to acquire IDG from Mill Point Capital, a private equity firm focused on control-oriented investments in the business services, industrials and IT services sectors. The acquisition is expected to close by the end of 2023.

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