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.