Home Depot Supply News: 12 Things for HDS Stock Investors to Know About the Home Depot Deal

HD Supply (NASDAQ:HDS) news for Monday includes Home Depot (NYSE:HD) announcing plans to acquire the company.

Home Depot (HD) storefront on a sunny day
Source: Jonathan Weiss / Shutterstock.com

Here’s what news investors need to know about the deal between HD Supply and Home Depot.

  • Home Depot plans to acquire HD Supply for a total of $8 billion.
  • It will do so by purchasing all outstanding shares of HDS stock for $56 each.
  • That offer price is a 25% premium over the closing price for HDS stock on Friday.
  • HD will be paying owners cash for their shares of HDS stock.
  • It plans to use cash on hand and debt to fund the transaction.
  • A Home Depot news release notes that the company expects the acquisition of HD Supply to be accretive to earnings per share starting in fiscal 2021.
  • The deal still needs approval from regulators and shareholders before it can close.
  • Home Depot says it expects to complete the deal in its fiscal fourth quarter of 2020, which ends on Jan. 31, 2021.
  • It’s worth noting that Home Depot is acquiring HD supply after selling the company off back in 2007.
  • This came after buying the company 10 years prior when it was under the Maintenance Warehouse name.
  • Following the sale, HD Supply went public just a few years later in 2013.
  • Home Depot says that its acquisition of HD Supply will make it “a premier provider in the MRO marketplace.”

HDS stock was up 24.3% and HD stock was up almost 1% as of Monday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/home-depot-supply-news-boosts-hds-stock/.

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