Home Depot to Buy HD Supply for $56 A Share
November 16 2020 - 8:49AM
Dow Jones News
By Colin Kellaher
Home Depot Inc. on Monday said it agreed to buy HD Supply
Holdings Inc., reuniting with the industrial distributor that it
sold in 2007.
The Atlanta home-improvement giant said it will pay $56 a share
in cash for HD Supply, a 25% premium to Friday's closing price of
$44.81.
The deal gives HD Supply a total enterprise value of roughly $8
billion, including net cash, Home Depot said.
Home Depot said it would fund the deal, which it expects to
complete by the end of January, with cash on hand and debt.
The company said it expects the acquisition to accelerate its
sales growth and add to per-share earnings next year.
Home Depot sold HD Supply to private-equity firms Bain Capital,
Carlyle Group and Clayton Dubilier Rice in 2007.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 16, 2020 08:34 ET (13:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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