Home Depot Acquires HD Supply For $8 Billion
Home improvement giant, Home Depot, has agreed to acquire HD Supply Holdings for the sum of $8 billion, which will reunite the retail chain with its prior subsidiary from over a decade ago when the two companies split up.
Under the agreement terms, Home Depot Inc. will purchase outstanding stocks of HD Supply Holdings Inc. for around $56 per share. The purchase price represents an inflated premium of approximately 25% above Friday’s closing share price.
With 156 million outstanding shares, the offer has a valuation of $8.7 billion, which includes $0.7 billion in net cash and $8 billion in enterprise value, according to a statement issued by company representatives on Monday.
The acquisition will reunite Home Depot with their former HD Supply contractor clientele which, along with do-it-yourself home improvement consumers, has increased exponentially due to more people staying home and fixing up their houses amid the ongoing pandemic.
Ann Sullivan is a contributing staff writer covering national and world news topics. She brings dedicated experience having written international and domestic news, blogs, and web content for over 20 years. She’s also a published poet and graphic designer with degrees in Business and Graphic Communications and has been a music distributor, music industry sponsorship sales director and band manager.