Home Depot Buys Plumbing Master Distributor
In a deal expected to close in November, The Home Depot has entered into a definitive agreement to purchase Your Other Warehouse (YOW), a master distributor of faucets, fixtures and bath & kitchen accessories, from parent company LCR-M. No other units of LCR-M are involved in the transaction.
YOW is based in Baton Rouge, La., and operates a second stocking facility in Las Vegas. As a master distributor, they sell strictly to plumbing wholesalers and to retail customers. President Tom Bromley will continue as president of the organization under Home Depot's ownership, reporting to Lynn Martineau, president of New Growth Business, along with Apex Supply, Georgia Lighting, Maintenance Warehouse and Villager's Hardware.
YOW had been supplying two divisions of The Home Depot, as well as the retailer's EXPO Designer Centers, with some special order plumbing products. Bromley told us that YOW would continue serving its traditional plumbing wholesaler customers, except they would now add all other Home Depot stores to their customer base.
"It is a channel conflict but we have been serving both wholesalers and the retailer market for many years, just as our manufacturers have been serving both channels," said Bromley. "All employees will stay and we will be continuing business as usual, except with Home Depot adding to our existing volume."
Bob Nardelli, president and CEO of The Home Depot, commented, "Adding Your Other Warehouse to the Home Depot family of businesses adds several valuable supports to our leadership position in home improvement. Their operation is clearly best-in-class, and in combination with our Apex Supply operations will establish us as a leader in the wholesale plumbing industry.
"In addition to their existing business, we expect to gain efficiencies by leveraging their expertise in distribution across all Home Depot stores, which will improve execution for our customers," said Nardelli.