Jacksonville-based Interline Brands Inc. announced today it has agreed to be bought by The Home Depot, the world’s largest home improvement retailer, for $1.625 billion in cash.
Interline is a leading national distributor of broad-line maintenance, repair and operation products.
The acquisition is expected to be completed in Home Depot’s fiscal third quarter, which ends Nov. 1, and is subject to applicable regulatory approval and customary closing conditions, including the repayment of Interline’s outstanding senior notes.
“Through this partnership, we believe we can bring a truly interconnected solution to customers, providing them with a single source for all of their maintenance, repair and operation needs –– whenever and wherever they need it,” said Interline Chairman and CEO Michael Grebe in a news release.
Grebe thanked Interline’s private equity sponsors at Goldman Sachs Capital Partners and P2 Capital Partners for their investment and support the past few years.
“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,” Grebe said.
Brad Gross, managing director of Goldman Sachs, said Interline has achieved “impressive financial results” and accomplished a number of key business enhancements.
Josh Paulson, partner at P2 Capital Partners LLC, said his group has been involved with Interline since 2007, when it became a public shareholder.
“I am confident this transaction will help to accelerate the strategy and allow it to serve as an even better partner for its customers and suppliers,” he said.
Goldman Sachs and Barclays are acting as financial advisers. Fried, Frank, Harris, Shriver & Jacobson is acting as legal adviser to Interline Brands in connection with the transaction.
The Home Depot operates 2,270 retail stores throughout the U.S., Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
In fiscal 2014, it had sales of $83.2 billion and earnings of $6.3 billion.
Interline Brands serves more than 175,000 customer locations and serves the institutional, multifamily housing and residential markets.