The Home Depot Acquires Hughes Supply, Inc.
The Home Depot, a 2,000-plus store home improvement retailer based in Atlanta, said Jan. 10 it was set to acquire Hughes Supply, Inc., a distributor of construction, repair and maintenance products based in Orlando. The $3.47 billion deal includes payment of $46.50 per outstanding Hughes share and the assumption of $285 million in net debt.
Hughes Supply will be part of The Home Depot Supply, a division that serves business-to-business customers such as contractors, builders, municipalities and maintenance professionals. The addition of Hughes Supply more than doubles the size of The Home Depot Supply, with projected 2006 combined sales approaching $12 billion. Together, the two companies will serve a $410 billion market, addressing the continuum from infrastructure and construction to maintenance, repair and remodel.
"By acquiring Hughes Supply, a company with a long and established reputation for excellence and service, we continue to execute our growth strategy laid out five years ago to enhance our core retail business, extend our business into adjacent areas and expand into new markets," said Bob Nardelli, chairman, president and CEO of The Home Depot. "As part of our expansion strategy, The Home Depot and Hughes Supply are an ideal strategic and operational fit for each other, and we look forward to welcoming the Hughes Supply team into The Home Depot family."
Hughes has more than 500 locations in 40 states-154 of them being in the Western region-with 66 locations in Texas, 33 in California, 23 in Arizona and 11 in Colorado. A Fortune 500 company, Hughes racked up revenues of $4.4 billion in its last fiscal year ended Jan. 31, 2005. The Home Depot posted FY2004 sales of $73.1 billion.