Home Depot targets pros with $1.6B acquisition

The Home Depot Inc. is spending about $1.6 billion in an acquisition squarely aimed at better meeting the needs of its professional customers.



The retailer is purchasing Jacksonville, Florida-based Interline Brands Inc., a national distributor and direct marketer of broad-line maintenance, repair and operations (MRO) products.



Under the terms of the agreement, The Home Depot will acquire Interline for $1.62 billion in cash, subject to customary adjustments. The acquisition, which has been approved by the shareholders of Interline, is expected to be completed during The Home Depot's fiscal third quarter of 2015 and is expected to be accretive to The Home Depot's earnings in fiscal 2015.



Interline’s assets include an outside sales force, fulfillment capabilities in the residential MRO market, and a distribution network of more than 90 locations throughout the U.S., Canada and Puerto Rico.



The Home Depot also announced that Bill Lennie, president, The Home Depot Canada, has been named executive VP, outside sales and service. In this newly created post, Lennie will be responsible for leading The Home Depot's Pro, MRO and installation services business, including the integration of Interline. Lennie will continue to lead The Home Depot Canada until a successor is named.



"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."



The deal is subject to applicable regulatory approval and other customary closing conditions.