Home Depot Paying $1.63 Billion for Interline

>Interline Brands for a price of $1.63 billion.

The deal, expected to close during the Home Depot’s fiscal third quarter ending November. 1, should be accretive to the Atlanta company’s earnings in fiscal 2015. The deal is subject to applicable regulatory approval and other customary closing conditions.

Home Depot’s Pro customers are mostly professional remodelers, contractors and repairmen looking for services such as delivery, expanded credit and bulk pricing.

Brad Gross, Managing Director of Goldman Sachs, said, “In recent years, Interline has achieved impressive financial results and accomplished a number of key business enhancements”. The company serves more than 175,000 customer locations.

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. This is a newly-created role that will have him overseeing the integration of Interline Brands into the company, as well as handling other duties.

Under Lennie’s leadership, The Home Depot Canada has achieved positive sales comps for the past 14 quarters.

Home Depot has sought new avenues of growth, such as online sales, after curtailing store openings.

Lennie will also continue to head the Canadian operations until his successor is appointed, the company said.

The Home Depot’s financial advisor for this transaction is BofA Merrill Lynch and the company’s legal advisor is Cleary Gottlieb Steen & Hamilton LLP. The home improvement retailer employs over 300,000 people.

Interline’s Jacksonville headquarters are located on the Southbank at the intersection of San Marco Blvd. and Mary St.

Interline is a leading distributor as well as direct marketer headquartered in Jacksonville, Florida.

Grebe thanked Interlines private equity sponsors at Goldman Sachs Capital Partners and P2 Capital Partners for their investment and support the past few years. “They have been partners in the truest sense of the word and they share our strong confidence that The Home Depot is the right fit for us as we look to further advance our leading position in the markets we serve”.