The Home Depot (NYSE:HD) announced it would acquire Interline Brands, a distributor of maintenance, repair and operations products, for $1.625 billion in cash.
The acquisition has been approved by shareholders and Interline, and is expected to be completed during The Home Depot's third quarter, which ends Nov. 1. The deal is subject to regulatory approval and other customary closing conditions.
"Addressing the needs of our Pro customers is a top priority for The Home Depot," said Craig Menear, chairman, CEO and president of The Home Depot. "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."
With the acquisition of Interline, The Home Depot adds in experienced sales force, fulfillment capabilities in the maintenance, repair and operations market, and a network of more than 90 locations in the United States, Canada and Puerto Rico.
Bill Lennie, president of The Home Depot Canada, has been named exec-VP, outside sales and service. In this newly created post, he will be in charge of integrating the two companies, while overseeing The Home Depot's Pro; maintenance, repair and operations; and the installation services business.
Lennie will continue as leader of The Home Depot Canada until a replacement is found.
Last month The Home Depot was named internet retailer of the year based on performance in several metrics, including a 37 percent increase in sales in 2014, twice the growth rate of Amazon. In the first quarter of 2015 alone, the retailer reported a 30 percent increase in e-commerce sales, accounting for 5 percent of overall sales.
-See this Home Depot press release
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