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Lowe’s picking up Maintenance Supply Headquarters
Posted on Thursday, 18 May 2017 12:45
North Carolina-headquartered home improvement retail chain Lowe’s has signed on the dotted line to pick up Maintenance Supply Headquarters, a Texan wholesaler of hardware goods.
Under the terms of the transaction, the buyer will pay USD 512.00 million for the business, which primarily serves the multi-family industry.
As a consequence, it expects its earnings for financial year 2017 to be positively impacted.
The deal still requires the nod from regulatory authorities and is slated to close in the second quarter of Lowe’s 2016 fiscal year.
According to the acquiror, the purchase is in line with its plans to enhance its existing relationship with its customer base, particularly with regard to its Pro Services business, and enable it to better serve clients in the multifamily housing segment.
Lowe’s head of development, Richard Maltsbarger, added that the move will also give the group a strengthened growth platform and broaden its product and service offerings.
Upon closing the buyer’s senior vice president of pro sales, Mike Turmmillo, will oversee the target.
Lowe’s most recent acquisition closed in November, when it bought the remaining stake it did not already own in Canadian hardware, home improvement and gardening products retailer Rona for CAD 165.60 million (USD 121.34 million).
It had previously picked up a majority share of the business for CAD 3.20 billion in May of last year.
Other wholesalers to have been targeted during 2017 to date include chemicals and laboratory equipment player VWR, which Avantor agreed to buy for USD 6.40 billion in the industry’s largest deal of the year to date, according to Zephyr, the M&A database published by Bureau van Dijk.
This was followed by a USD 4.60 billion takeover of Booker Group by UK supermarket giant Tesco, which was announced in January and is slated to close later this year or early in 2018.
© Zephus Ltd