The Home Depot, the world’s largest home improvement retailer, announced its entry into a definitive agreement to acquire Jacksonville, Fla.-based Interline Brands Inc., the parent company of such well-known plumbing brands as Easy-Tite faucet parts, Easy Wrap pipe join tape, Blue Spot flush valve bulbs and Proplus garbage disposals. It is also the parent company of wholesaler Barnett with locations all over the country.
Under the terms of the agreement, The Home Depot will acquire Interline for $1.625 billion in cash, subject to customary adjustments. The acquisition, which has been approved by the shareholders of Interline, is expected to be completed during The Home Depot’s fiscal third quarter, which ends on November 1, 2015. The deal is subject to applicable regulatory approval and other customary closing conditions.
The transaction is expected to be accretive to The Home Depot’s earnings in fiscal 2015. The company will provide an update to its fiscal 2015 sales and diluted earnings-per-share growth guidance to include the impact of this transaction when it reports its second quarter financial results on August 18, 2015.
“Addressing the needs of our Pro customers is a top priority for The Home Depot,” said Craig Menear, chairman, CEO and president of 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.”
Interline brings an experienced outside sales force, fulfillment capabilities in the residential MRO market, and an extensive distribution network of more than 90 locations throughout the U.S., Canada and Puerto Rico.
“We’re thrilled for our customers and employees that Interline Brands and The Home Depot have agreed to join forces,” said Michael Grebe, chairman & CEO, Interline. “We’re confident they all will benefit from this next exciting stage in our company’s history.”
The Home Depot also announced today that Bill Lennie, president, The Home Depot Canada, has been named EVP, Outside Sales and Service. In this newly created post, Lennie will be responsible for leading The Home Depot's Pro, MRO and installation services business, including the integration of Interline.
Under Lennie’s leadership, The Home Depot Canada has achieved positive sales comps for the past 14 quarters. His prior responsibilities have included merchandising, global sourcing, proprietary brands, and oversight of Your Other Warehouse (YOW), a plumbing distributor owned by The Home Depot.
“As a 20-plus-year veteran of The Home Depot, Bill brings not only a track record of outstanding accomplishments, but also a breadth of experience from across the organization,” said Menear. “Bill is the ideal choice to continue growing these areas of our business.”
Lennie will continue to lead The Home Depot Canada until a successor is named.