Home Depot To Acquire Interline Brands For $1.63 Bln In Cash

(RTTNews) - Home improvement retailer Home Depot, Inc. (HD) agreed Wednesday to acquire Interline Brands, Inc. for $1.625 billion in cash, subject to customary adjustments.

Jacksonville, Florida-based Interline Brands is a leading national distributor and direct marketer of broad-line maintenance, repair and operations (MRO) products. It has an extensive distribution network of more than 90 locations throughout the U.S., Canada and Puerto Rico.

Interline is currently jointly owned by Goldman Sachs Capital Partners, P2 Capital Partners, LLC and its management.

The deal, approved by the shareholders of Interline, is expected to be completed before November 1, 2015. The deal is subject to applicable regulatory approval and other customary closing conditions.

"Addressing the needs of our Pro customers is a top priority for The Home Depot. Interline is a well-run company that has achieved impressive financial results over the last few years. 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," Home Depot Chairman, President and CEO Craig Menear said.

The deal is expected to add to Home Depot's earnings per share in fiscal 2015 itself. The company said it will provide an update to its fiscal 2015 sales and earnings per share growth guidance to include the impact of the proposed deal when it reports its second quarter financial results on August 18, 2015.

Atlanta, Georgia-based Home Depot also announced that Home Depot Canada President Bill Lennie has been named executive vice president of outside sales and service. In this newly created post, Lennie will be responsible for leading Home Depot's Pro, MRO and installation services business, including the integration of Interline.

However, Lennie will continue to lead The Home Depot Canada until a successor is named. Lennie is a 20-plus-year veteran of Home Depot.

In Wednesday's regular trading session, HD is currently trading at $114.81, up $0.95 or 0.83% on a volume of 0.68 million shares.