Vinings-based Home Depot is the largest company based in Georgia, with revenues of more than $112 billion a year. It has more than 400,000 employees.
The companies plan to complete the deal by the end of January, with Home Depot buying outstanding shares of HD Supply at $56 per share.
Bloomberg News had reported earlier this month that executives at Lowes were talking with HD Supply about a possible merger. Gorman declined to comment on those reports.
North Carolina-based Lowes is Home Depot’s chief rival.
Shares of Home Depot stock have risen from a low of $152.15 in March to close at $277.36 on Friday. On Monday, Home Depot shares were up $1.63 at mid-day.
HD Supply hit a low of $23.20 a share in March before starting a long climb. On Friday, HD Supply stock closed at $44.81 a share.
Home Depot is slated to announce its quarterly earnings Tuesday morning.
Home Depot has been one of the standout corporate performers during the pandemic, benefiting from a surge of do-it-yourself home repairs by people spending more time around the house, but also from an increased use of online ordering.