Home improvement retailer The Home Depot Inc. (NYSE:HD) has finalized the acquisition of HD Supply Holdings Inc. for a total enterprise value of around $8 billion.
Home Depot merges with HD Supply
HD Supply is a top national maintenance, repair, and operations (MRO) products distributor in the hospitality and multifamily end markets.Craig Menear, Home Depot’s CEO said that they are delighted to add HD Supply associates to the company. He said that the business combination will enable Home Depot to offer better services to its current and new MRO clients. Meaner said that he is looking forward to the value the acquisition will bring to the company’s shareholders, associates, and customers.
This acquisition will position Home Depot as a leading provider in the highly fragmented MRO market estimated to be around $55 billion. The HD Supply offerings will complement Home Depot’s current MRO business with diverse products offering as well as value-added capabilities. Equally the company will leverage HD Supply’s experienced salesforce and comprehensive MRO-distribution network across North America.
82.9% of HD Supply shares validly tendered and not validly withdrawn
The tender offer for HD Supply’s outstanding shares expired on December 23, 2020. Home Depot received information from the depositary and paying agent for the offer, American Stock Transfer & Trust Company that as of the expiration date around 127.929 million shared had been tendered validly and not validly withdrawn. This represents around 82.9% of all HD Supply outstanding shares. Most importantly the offer conditions have been met and Home Depot and Coronado Acquisition Sub Inc., its subsidiary, have agreed on a $56 per share payable in cash without interest. However, this is subject to withholding taxes, and the shares validly tenders and not withdrawn validly will pay for such shares.
Following the successful combination, HD Supply will become Home Depot’s wholly-owned subsidiary. In connection with the merges, all the HD Supply stock not validly tendered has been canceled. They will convert them into the right to receive $56 in cash as will be paid on all validly tendered HD Supply shares.