Home Depot Inc., the nation's No. 1 home improvement retailer, said it would expand its business offering to contractors with the acquisition of White Cap Construction Supply Inc., a distributor of specialty hardware, hand tools and safety equipment.
Home Depot’s acquisition of White Cap is another example of Home Depot’s ongoing expansion far past its core focus on sales to homeowners. The company has acquired flooring companies and other businesses in recent years as it expands its Home Depot Supply division that caters to homebuilders, facility maintenance professionals, contractors and landscapers.
White Cap, based in Costa Mesa, Calif., specializes in selling construction materials, tools, safety equipment and lighting to professional customers. The company operates 70 branch locations throughout the United States and employs 1,720 people. White Cap’s estimated annual sales are approximately $500 million.
“This acquisition adds new customer channels and product selling opportunities,” said Frank Blake, executive vice president — business development, The Home Depot. “We were attracted to White Cap because of its leadership position in the industry and because its customers and product lines complement our existing retail business. White Cap represents another step in offering professional customers products and services for the entire construction process.”
White Cap, founded in 1976, delivers about 60 percent of its products to job sites, and the other 50 percent of purchases are made at the branch locations.
“White Cap is the clear leader in this highly fragmented market, and we’re pleased that its leadership team will continue to play an integral role in the organization,” said Jim Stoddart, president of The Home Depot Supply.
The agreement is expected to close within a month, the companies said.