Home Depot to buy hardware unit

Home Depot has agreed to buy the hardware business unit of HD Supply Holdings Inc., the industrial distributor that was once part of the home-improvement retailer and has since been a longtime partner.

"Our companies have had a long-standing relationship," said Craig Menear, CEO and presiden of Home Depot. "By formally bringing the business into the Home Depot family, we expect to further enhance our supply chain capabilities and hardware product offerings."

Terms of the deal to buy HD Supply Hardware Solutions, which supplies fasteners and builders hardware to U.S. retailers, weren’t disclosed. The transaction is expected to close by the end of fiscal 2014 subject to obtaining customary regulatory approvals.

"After a detailed evaluation, we determined that selling our Hardware Solutions business is in the best interests of our associates and HD Supply shareholders," said Joe DeAngelo, CEO of HD Supply. "HD Supply Hardware Solutions and The Home Depot have a long-standing and natural partnership."

Home Depot is HD Supply’s largest customer and accounts for about 98% of its annual sales.