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Home Improvement Retailer Lowe's Closes USD 512m Acquisition of Distributor Maintenance Supply Headquarters.


27 June 2017 - US-based home improvement retailer Lowe's Companies, Inc. (NYSE: LOW) has closed the acquisition US-based multifamily housing maintenance, repair and operations products distributor Maintenance Supply Headquarters for a total transaction value of USD 512m, the company said.

Based in Houston, Texas, Maintenance Supply Headquarters operates 13 distribution centres serving customers in 29 geographic areas, primarily in the western, southeastern and south central US, with a portfolio of more than 5,300 products and value-added services for maintaining and renovating multifamily properties.

Lowe's said the transaction is expected to be accretive to Lowe's earnings in fiscal 2017.

Purchasing Maintenance Supply Headquarters is a step in Lowe's strategy to deepen and broaden its relationship with the pro customer and better serve their needs.

When combined with Lowe's November 2016 acquisition of Central Wholesalers, a prominent MRO distributor in the Mid-Atlantic and Northeast, this acquisition will substantially expand Lowe's ability to serve the multifamily housing industry.

With the close of the Maintenance Supply Headquarters transaction, Lowe's combined multifamily MRO business will include 16 distribution centers in attractive regions throughout the nation generating more than USD 400m in annual sales.

Michael A. Tummillo, a 13-year Lowe's veteran and recently appointed senior vice president of Lowe's pro sales organisation, will oversee Maintenance Supply Headquarters and Central Wholesalers.

He will also lead Lowe's Pro Services business and Alacrity Services, a leading supplier of home restoration and repair services.

Lowe's Companies is a home improvement company with fiscal year 2016 sales of USD 65bn. Lowe's and its related businesses operate or service 2,365 home improvement and hardware stores and employ over 290,000 people.

Goldman Sachs and Co. LLC is acting as financial advisor to Lowe's, while Hunton and Williams LLP is acting as legal advisor. Crutchfield Capital Corp. is acting as financial advisor to Maintenance Supply Headquarters, while Porter Hedges LLP is acting as legal advisor.

Country: USA

Sector: Wholesale/Retail

Target: Maintenance Supply Headquarters

Buyer: Lowe's Companies, Inc


Deal size in USD: 512m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: Goldman Sachs and Co , Hunton and Williams ,


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Publication:M & A Navigator
Date:Jun 27, 2017
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