Home Depot on Wednesday said it would buy Interline Brands, a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair, and operations products, for $1.625 billion in cash.
The deal, expected to close during the Home Depot’s fiscal third quarter ending Nov. 1, should be accretive to the Atlanta company’s earnings in fiscal 2015.
Home Depot’s chairman, president, and chief executive Craig Menear said in a press release that addressing the needs of the retailer’s professional contractor customers “is a top priority.”
“Interline is a well-run company that has achieved impressive financial results over the last few years,” Menear said. “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.”
Interline’s product lines include hearth and chimney products, propane gas appliances and installation, and locks and other security hardware.
A Bloomberg story Wednesday said that after more than three years of housing-price gains, homeowners have become more willing to take on large projects that require help from a contractor.
“Purchases of more than $900 rose 6.8% at Home Depot in the first quarter. That’s more than twice as fast as the 3.2% growth for tickets of less $50,” Bloomberg wrote. “Same-store sales of products geared toward professionals, such as siding, power tools, and commercial lighting, rose more than 10% in the period.”
Home Depot also announced that Bill Lennie, president of Home Depot Canada, has been named executive vice president, outside sales and service. In this newly created post, Lennie will be responsible for leading the retailer’s pro, MRO (maintenance, repair, and operations) and installation services businesses, including the integration of Interline.