6 companies owned by Home Depot

The Home Depot Inc. (HD) is a leading home improvement retailer, founded in 1978 by Bernie Marcus and Arthur Blank, who are passionate about themselves Do it yourself. Their vision is to open a supermarket that provides a variety of commodities, low prices and well-trained staff, they can guide customers to complete most types of house repairs and decorations.

The first two Home Depot stores opened in Atlanta in 1979. The company went public in 1981 and has grown into the world’s leading home improvement retailer, with nearly 2,300 stores in the United States, Canada and Mexico. It also offers more than 1 million products online.

Home Depot is still primarily a brick-and-mortar retailer. It has avoided the significant sales losses of e-commerce giant Amazon.com Inc. (AMZN). One of the main reasons is that many of Home Depot’s products are large and bulky items that are difficult to transport. Send by express mail. Home Depot derives major sales from individual consumers and professional contractors. For fiscal year 2020 (FY) ending January 31, 2021, net sales were US$132.1 billion and net income was US$12.9 billion. As of July 9, 2021, the company’s market value was 341.3 billion U.S. dollars.

Throughout its history, Home Depot has focused on catering to professional contractors and self-service consumers through customized services. The service includes knowledgeable employees who can instruct customers on how to operate power tools, replace valves, and lay tiles. The Home Depot acquisition reflects this approach. The company focuses on transactions that strengthen its core business: by adding more product offerings and well-trained experts in specific home improvement areas. Sales to professional builders and contractors have become an increasingly important part of their business. Although Home Depot’s core business is physical stores, it has also expanded through acquisitions of online companies with a strong track record of customer attention.

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Below, we take a look at six key acquisitions of Home Depot.

Compact power equipment company

  • Business type: equipment leasing and maintenance services
  • Purchase price: $265 million
  • Acquisition date: July 6, 2017 (announcement date)

Compact Power Equipment was founded by entrepreneur Roger Braswell to provide equipment rental services, including the rental of cranes, excavators, tractors and trenchers. Compact Power Equipment first established a long-term business partnership with Home Depot in 2009 and began leasing 115 Home Depots in six states.

In 2017, Home Depot acquired the company, which subsequently provided equipment rental services in more than 1,000 Home Depot stores in the United States and Canada. The acquisition strengthens Home Depot’s products and services to professional business customers.

Company store

  • Business type: online retailer of textiles and home furnishing products
  • Purchase price: undisclosed terms of the transaction
  • Acquisition date: December 19, 2017

Founded in 1911, Company Store sells bed sheets, quilts, bath towels, selected clothing and other home decoration products online. Home Depot acquired The Company Store from Hanover Direct in 2017, excluding its five retail stores.

In addition to immediately strengthening Home Depot’s online footprint, the transaction also enables the company to expand into a wider range of online decoration businesses by providing strong product development and sourcing capabilities.

Interline Brands Inc.

  • Business type: distributors and direct sellers of construction products
  • Purchase price: $1.6 billion
  • Date of acquisition: August 24, 2015
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Interline Brands was founded in 1978 as Wilmar Industries Inc. The company provides maintenance, repair and operation products to professional contractors, facility maintenance professionals, hardware stores and other customers in the United States, Canada and Puerto Rico.

Home Depot acquired Interline Brands in 2015 for slightly more than $1.6 billion. The acquisition expands Home Depot’s sales and services mainly to professional contractors and maintenance and repair businesses by adding experienced customer sales teams, fulfillment capabilities and extensive distribution networks.

Blinds.com

  • Business type: online curtain retailer
  • Purchase price: undisclosed terms of the transaction
  • Date of acquisition: January 23, 2014

Blinds.com originated from a website called NoBrainerBlinds.com, which first started selling blinds and sun blinds in June 1996. The company specializes in online sales of curtains, including real-time chat and face-to-face video consulting services.

Home Depot acquired Blinds.com in 2014, when the online curtain market grew rapidly. This acquisition strengthens Home Depot’s online business.

Red lighthouse

  • Business type: online home improvement service
  • Purchase price: undisclosed terms of the transaction
  • Acquisition date: January 20, 2012 (announcement date)

Redbeacon won the 2009 TechCrunch 50 Award and was founded in 2008 by former Google employees Aaron Lee, Ethan Anderson and Yaron Binur. The company offers an online search directory of local business listings, which contains ratings and reviews of screened and approved home contractors. Customers using the site can get multiple quotes and arrange appointments with local business professionals.

In 2012, Home Depot acquired Redbeacon, and its parent company now refers to it as Pro Referral. This acquisition is another example of how Home Depot has expanded and strengthened its online service suite.

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HD power

  • Business type: wholesale distributor of maintenance, repair and operations (MRO) products
  • Purchase price: approximately US$8 billion
  • Acquisition Date: December 24, 2020

HD Supply Holdings Inc. was established in 1974 as a maintenance warehouse. Home Depot originally acquired Maintenance Warehouse in 1997, later renamed it Home Depot Supply, and then HD Supply. In 2007, Home Depot sold HD Supply to a group of private equity firms.

By the end of 2020, when Home Depot re-acquired HD Supply, the company had grown to have 44 distribution centers in the United States and Canada and became a top distributor of maintenance, repair and operations (MRO) products. This acquisition strengthens Home Depot’s MRO business in the hotel and multi-family terminal markets. The deal will also help Home Depot increase its business with large contractors and other professional clients, who often get business from professional suppliers.

Home Depot Diversity and Inclusion Transparency

As part of our efforts to raise awareness of the importance of company diversity, we emphasized Home Depot’s transparency in its commitment to diversity, inclusion, and social responsibility. The diagram below illustrates how Home Depot reports on the diversity of its management and workforce. This indicates whether Home Depot has disclosed data on the diversity of its board of directors, top management, general management and employees on various indicators. We have used ✔ for transparency.

The Home Depot and Inclusion Report
Race gender ability Veteran status Sexual orientation
Board of Directors ✔ (U.S. only) ✔ (U.S. only)
Top management
Integrated management ✔ (U.S. only) ✔ (U.S. only)
employee ✔ (U.S. only) ✔ (U.S. only)

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