Home Depot is bolstering its grip over the professional building and repair market with its latest acquisition of Interline Brands for $1.6 billion in cash.
The acquisition, which is being backed by a range of investors including P2 Capital Partners, Interline management and Goldman Sachs, is subject to regulatory approval and is expected to conclude by the company’s third fiscal quarter.
“Addressing the needs of our Pro customers is a top priority for The Home Depot,” Home Depot’s CEO Craig Menear said in a statement. “With [Interline’s] 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 Brands, which was reportedly bought for $1.1 billion by Goldman Sachs and P2 Capital in 2012, currently serves over 175,000 customers through a distribution network of 90 locations spread across the U.S., Canada and Puerto Rico and employs over 1,600 sales and support staff.
The company also announced the appointment of Bill Lennie, president of the company’s Canadian operation, as EVP of outside sales and service; Lennie will lead the Pro, MRO and installation services business, as well as the integration of Interline Brands.