December 2, 2020

Market and Financial News Aggregator

Lowe’s Is Said to Be in Talks to Acquire HD Supply

2 min read

(Bloomberg) — Home improvement retailer Lowe’s Cos. is in preliminary talks to buy building products distributor HD Supply Holdings Inc., according to people familiar with the matter.The companies have been discussing a deal with advisers, though no final decision has been made, said the people, who asked to not be identified because the matter isn’t public. While Lowe’s approached HD Supply recently, it doesn’t currently plan to proceed with a deal, one of the people said.It’s unclear whether HD Supply is talking to other suitors.Representatives for HD Supply and Lowe’s didn’t immediately respond to requests for comment.HD Supply gained more than 16% in after hours trading on Monday.The stock rose 0.6% to close at $43.75 in New York, giving the company a market value of about $7.1 billion. Lowe’s fell 8.9% to close at $153.45, giving it a market value of about $116 billion.HD Supply used to be owned by Lowe’s rival Home Depot Inc., which sold the company to private equity firms in 2007. They took it public about six years later.One of the largest industrial distributors in North America, HD Supply provides everything from bleach, to doors and ceramic tile to about 500,000 customers from 270 branches and 44 distribution centers, according to its annual report.Lowe’s, like the larger Home Depot, has been thriving during the pandemic.Sales have skyrocketed this year with socially-distancing Americans splurging on their properties at home-improvement chains that stayed open because they were deemed essential.With more customers than ever before, Lowe’s is trying to ride the momentum into winter — generally its slowest quarter before busy spring cleanups — by stocking up on more holiday gifts than usual, like trampolines and Ninja air fryers.(Updates with additional details in second paragraph; updates shares in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

2020-11-09 18:22:51

Read more from source here…

Leave a Reply