Home Depot Buys Repair-Products Marketer Interline Brands For $1.63 Billion
By Christine Kern, contributing writer
Acquisition positions retailer to leverage multifamily housing growth
The Home Depot, Inc., had announced that it will acquire repair-products marketer Interline Brands for $1.63 billion, marking the retailer’s large acquisition in nearly a decade, in a move that will position it well to capitalize on the recent growth in multifamily housing, according to the Wall Street Journal.
Interline Brands Inc. is a national distributor and direct marketer of broad-line maintenance repair and operations products, and the acquisition is part of a concerted effort to expand the Home Depot’s Pro division, which caters to professional contractors and builders. The Pro portfolio of brands includes DeWalt and Makita.
The Wall Street Journal called the deal “a bid to capitalize on rising rates of renters amid declining homeownership.”
"Addressing the needs of our Pro customers is a top priority for The Home Depot," said Craig Menear, chairman, CEO and president of Home Depot, in a statement. "Interline is a well-run company that has achieved impressive financial results over the last few years. With their seasoned leadership team, we will enhance our ability to serve the Pro – both in the store and at any desired location outside of the store – driving significant value for our customers and shareholders."
The acquisition is expected to be concluded during Q3 2015, and will bring Interline’s experienced outside sales force, fulfillment capabilities in the residential MRO market, and an extensive distribution network of more than 90 locations across the U.S., Canada, and Puerto Rico under The Home Depot’s umbrella.
As part of this new focus, The Home Depot also announced that Bill Lennie, president, The Home Depot Canada, has been named EVP, Outside Sales and Service, and will be responsible for leading The Home Depot's Pro, MRO and installation services business, including the integration of Interline.
"As a 20-plus-year veteran of The Home Depot, Bill brings not only a track record of outstanding accomplishments, but also a breadth of experience from across the organization," said Menear. "Bill is the ideal choice to continue growing these areas of our business."
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