Home improvement retailer The Home Depot(R) completed its acquisition of Hughes Supply, a leading distributor of construction, repair and maintenance products. In accordance with the terms of the January 2006 agreement, Home Depot (Atlanta, Georgia, U.S.) acquired Hughes for aggregate consideration of U.S. $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 into a division that serves business-to-business customers, including home builders, professional contractors, municipalities, and maintenance professionals. The division will provide customers with products and services from infrastructure through construction to lifetime maintenance.
Hughes Supply is the largest acquisition yet by Home Depot and it more than doubles the size of Home Depot Supply. The new organization has more than 20,000 employees in more than 900 locations with projected 2006 combined sales approaching $12 billion.
"We plan to repeat in the professional space the same type of market transformation The Home Depot pioneered and executed in the do-it-yourself retail space," said Bob Nardelli, chairman, president and CEO of The Home Depot.
Joe DeAngelo, executive vice president, said the company plans for Home Depot Supply to become the world's largest diversified wholesale distributor by 2010, with a goal of more than 1,500 locations and sales of $23 billion - $28 billion, or 18 percent-19 percent of The Home Depot's overall sales.
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