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Friday, February 26, 2021

Home Depot Will Buy Back HD Supply

Home Depot announced on Monday afternoon that it would buy HD Supply Holdings in a deal valued at about $8 billion, setting itself up to regain full control over the industrial materials wholesaler after selling it a decade ago.

Home Depot announced on Monday afternoon that it would buy HD Supply Holdings in a deal valued at about $8 billion, setting itself up to regain full control over the industrial materials wholesaler after selling it a decade ago.

The main US home improvement chain pointed out it would offer $56 in cash for each share of HD Supply, a near 25 percent premium to the stock’s last close. Shares of HD Supply jumped 24.5 percent on the news about the deal.

Home Depot is looking with the agreement to expand its reach into building utility and maintenance products. 

The company is taking this step as it is betting that the economic toll of the COVID-19 crisis will force swathes of Americans to look for cheap housing.

“With a bolstered sales force and enhanced supply chain, we have no doubt Home Depot will be a more formidable player in the$55 billion maintenance, repair and operations market for years to come,” Jefferies analysts wrote in a statement.

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