Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

Home Depot Inc. Home Depot Inc. said on Monday it would buy HD Supply Holdings Inc in a deal valued at about $8 billion, setting itself up to regain control over the industrial material wholesaler after spinning it off over a decade ago.

The home improvement chain said it would offer $56 per share in cash to HD Supply HD Supply shareholders, a near 25% premium to the stock’s last close. It expects to fund the deal through cash on hand and debt.

The company looks to expand its construction and maintenance goods business by acquiring HD Supply, one of the largest distributors of construction, industrial and maintenance supplies in North America.

Story continues below advertisement

HD Supply shares jumped 24.3% premarket.

Home Depot said the deal is expected to close in its fiscal fourth quarter, which ends on Jan. 31, and is likely to be accretive to earnings in 2021.

J.P. Morgan Securities LLC served as financial adviser, and Wachtell, Lipton, Rosen & Katz served as legal counsel to Home Depot on the deal.

Home Depot’s smaller rival Lowe’s Cos Inc last week said it was not in talks to buy HD Supply, denying a previous media report.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies