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Lowe’s Buys MRO Distributor Maintenance Supply Headquarters to Expand Pro Offer

May 26, 2017
Maintenance Supply Headquarters, founded in 2006, operates 13 distribution centers, primarily in the western, southeastern and south central U.S., with a portfolio of more than 5,300 products and value-added services for maintaining and renovating multi-family properties.

Home center chain Lowe’s Companies, Inc., Mooresville, NC, has agreed to acquire Maintenance Supply Headquarters, Houston, a distributor of maintenance, repair and operations (MRO) products focused on the multi-family housing market. Lowe’s put the total transaction value at $512 million.

Maintenance Supply Headquarters, founded in 2006, operates 13 distribution centers, primarily in the western, southeastern and south central U.S., with a portfolio of more than 5,300 products and value-added services for maintaining and renovating multi-family properties. The company’s product offering includes appliance, plumbing, HVAC, lighting, hardware, electrical and other products, as well as services such as renovation project support, custom fabrication and educational classes.

Lowe’s said the purchase of Maintenance Supply Headquarters is an important step in its strategy to deepen and broaden its relationship with maintenance professionals. Lowe’s bought Central Wholesalers, a prominent MRO distributor in the Mid-Atlantic and Northeast, in Nov. 2016 and said the combination will substantially expand Lowe’s ability to serve the multifamily housing industry. Lowe’s combined multi-family MRO business will include 16 distribution centers generating more than $400 million in annual sales.

Mike Tummillo, a 13-year Lowe’s veteran and recently appointed senior vice president of Lowe’s pro sales organization, will oversee Maintenance Supply Headquarters and Central Wholesalers. He will also lead Lowe’s Pro Services business and Alacrity Services, a supplier of home restoration and repair services. Tummillo is responsible for deepening and broadening Lowe’s relationship with professional customers to better serve their needs.

“Lowe’s has long served the multi-family housing industry through our Pro Services business, and we are excited about the potential to further expand our presence in this highly attractive and growing customer segment,” said Richard Maltsbarger, Lowe’s chief development officer and president of international. “Together, Maintenance Supply Headquarters and Central Wholesalers will expand our capabilities in serving this key segment while strengthening our platform for future growth with enhanced product and service offerings for MRO customers.”

Separately, Lowe’s reported quarterly financial results with a revenue increase of 10.7% for the first quarter at $16.9 billion, up from $15.2 billion in the first quarter of 2016. Same-store sales for the U.S. business increased 2%. Net income fell to $602 million in the first quarter ended May 5, from $884 million a year earlier.

Lowe’s operates 2,137 home improvement and hardware stores in the United States, Canada and Mexico representing 213.8 million square feet of retail selling space and employs over 290,000 people.