Home Depot will spend $1.625 billion to buy a company that it hopes will boost its appeal among customers who do maintenance and repair work for big facilities like hospitals, hotels and apartment buildings.
The acquisition of Interline Brands, based in Jacksonville, Fla., is Home Depot’s second largest buy ever. The largest was the $3.5 billion purchase in 2006 of construction and maintenance product distributor Hughes Supply, which later became part of spinoff HD Supply.
Interline, which sells cleaning supplies, HVAC units and hearth and chimney products, will enable Home Depot to serve maintenance and repair workers who have bulk purchase orders for large projects such as multi-family housing that go beyond the Atlanta retailer’s current capabilities, the company said.
“Interline is a well-run company that has achieved impressive financial results over the last few years,” Home Depot Chairman and CEO Craig Menear said Wednesday in a statement.
“With their seasoned leadership team, we will enhance our ability to serve the Pro – both in the store and at any desired location outside of the store – driving significant value for our customers and shareholders,” he said.
The deal, which will be paid in cash, is expected to be completed in the fall.
Interline has more than 90 locations in the U.S., Canada and Puerto Rico.
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