![]() was deemed an essential retailer early in the pandemic and remained open even as many stores shut down for months. The deal adds to the momentum for Home Depot, which along with rival Lowe’s Cos. The tie-up could add as much as 33 cents a share to Home Depot’s earnings, Grom added. The company has faced underinvestment in recent years, giving the buyer the opportunity to improve the business, he said. HD Supply is “a good business with solid margins,” Chuck Grom, an analyst with Gordon Haskett, said in a note. “We have every expectation to maintain and expand our market share gains realized thus far in 2020, and we expect that our end markets will continue to improve throughout the remainder of the year,” he said, without specifying the share gains. 2, DeAngelo said HD Supply was on course to build on the market share gains it had made during the quarter and the month of August. 9 earnings call with investment analysts for the second quarter ended Aug. ‘Every expectation’ to expand market share It doesn’t break out ecommerce figures but says it processes much of its sales through and a site for home improvement contractors,. 2, 2020, sells products ranging from power tools and power generators to janitorial supplies and heating, ventilation and air-conditioning (HVAC) equipment to some 300,000 customers. HD Supply, which reported $6.1 billion in sales for the fiscal year ended Feb. Amazon Business reported in 2018 that it had reached “ more than $10 billion in annualized sales.” Grainger Inc.-which did more than half of its $11.5 billion in sales last year via ecommerce-is reporting gains in market share in the fragmented MRO market and as Amazon Business is recognized as a rising competitor in the industry. ![]() The deal for HD Supply comes at a time when prominent MRO distributor W.W. 5 in the Digital Commerce 3 with more than $10 billion in web sales. Home Depot reported $110.2 billion last year and is ranked No. Home Depot said it expects to complete the acquisition during its fiscal fourth quarter, which ends Jan. ![]() Joe DeAngelo, chairman and CEO of HD Supply, added: “We are confident that this will position both The Home Depot and HD Supply for continued growth and success in the MRO distribution space.” “HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the U.S. “The MRO customer is highly valued by The Home Depot, and this acquisition will position the company to accelerate sales growth by better serving both existing and new customers in a highly fragmented $55 billion marketplace,” Craig Menear, chairman and CEO of The Home Depot, said in announcing the deal. Including net cash, the deal has an enterprise value of about $8 billion, the companies said. ![]() With 162 million shares outstanding, the offer is valued at almost $9.1 billion. at $56 per share, the two companies said today. Home Depot-recognized as the world’s largest home improvement retailer with both B2B and retail sales on as well as through its chain of more than 2,200 stores-has made a cash tender offer to purchase all of the outstanding shares of HD Supply Holdings Inc. Steppingstones to B2B ecommerce excellenceĪutomating Shipping Workflows for Next Generation Multi-Vendor MarketplacesĬraig Menear, chairman and CEO, The Home Depot Inc. B2B Weekly Infographic: Businesses are Hiringīack-End Integration for Customer Experienceī2B Distributors Continue to Grow EcommerceĮnvisionB2B | June 2023 | Chicago | #1 B2B Ecommerce Conference ![]()
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