Home improvement specialty retailer Home Depot Inc. (NYSE: HD), has agreed to acquire Interline Brands Inc. (NYSE: IBI), a distributor and direct marketer of broad-line maintenance, repair and operations products. The company will be bought out for $1.63 billion in cash to expand market sales to professional contractors and builders.
The Jacksonville, Florida based company will add a retailing network of over 90 locations, distributing Barnett pro contractor supplies and Wilmar janitorial equipment to over 175,000 consumers in the U.S, Canada, and Puerto Rico.
The deal is expected to close in the fiscal third quarter ending November 1st.
In addition, Home Depot Canada President Bill Lennie has been named executive vice president of outside sales and service to oversee the acquisition of Interline along with the company’s maintenance, installation and repair services.
In May, Home Depot reported strong sales growth by Americans who have been living under contemporary housing markets. Homeowners are now more willing to accept help from contractors in order to execute large and difficult home projects. Recent purchases indicate that homeowners spending over $900 rose 6.8 percent at Home Depot in the first quarter. Products specializing for professionals who use power tools and construction supplies rose over 10 percent in the period.
Shares have improved 8.5 percent this year through Tuesday’s close, while rival Lowe’s Cos. (NYSE: LOW) declined 3.5 percent.
“Addressing the needs of our pro customers is a top priority for the Home Depot,” said Home Depot Chairman and CEO, Craig Menear. “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.”