June 2006 Volume 45, Issue 5
The Home Depot Buys Hughes Supply, Closes Yardbirds
Atlanta-based The Home Depot® announced the completion of its acquisition of Hughes Supply Inc. for aggregate consideration of $3.51 billion, including the payment of $46.50 per outstanding share and the assumption of $325 million in net debt.
Hughes Supply and Home Depot Supply will be combined to create a division that serves business-to-business customers, including homebuilders, professional contractors, municipalities and maintenance professionals. Both companies have already built leadership positions in a range of markets, and the combination of the two will provide customers with a continuum of products and services from infrastructure through construction to lifetime maintenance.
The close of the Hughes Supply transaction marks the largest acquisition ever by The Home Depot, more than doubling the size of Home Depot Supply. The newly-combined organization has more than 20,000 employees in more than 900 locations with projected 2006 combined sales approaching $12 billion.
Hughes Supply operates in 40 states with more than 500 locations.
The Home Depot Inc. has also announced that it will close all ten Yardbirds Home Center stores next month. Home Depot bought Petaluma, Calif.-based Yardbirds in December 2005.
The Santa Rosa and Martinez, Calif., Yardbirds will reopen as traditional Home Depot stores. The Petaluma store will be remodeled and reopened as a new store format, said Kathryn Gallagher, a Home Depot spokeswoman.
The Home Depot said that all former Yardbirds locations will eventually reopen, though it has not yet determined in what form. Most Yardbirds stores are smaller than by half than traditional Home Depot stores.
Home Depot said it will try to keep all Yardbirds employees interested in remaining with the company.
© Copyright 2006 Key Communications Inc. All rights reserved. No reproduction of any type without expressed written permission.