Lowe's Companies is acquiring Maintenance Supply Headquarters, a distributor of maintenance, repair and operations (MRO) products to the multifamily industry, for $512 million.
Houston, Texas-based Maintenance Supply Headquarters has 13 distribution centers serving customers in 29 geographic areas, 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 multifamily properties.
Founded in 2006, the company has a broad product offering that includes appliance, plumbing, HVAC, lighting, hardware, electrical and other products for maintaining and renovating multifamily properties, as well as services such as renovation project support, custom fabrication and educational classes.
For Lowe's, the move comes as an important step toward its strategy to expand its offering to its pro customer -- as well as build on the momentum it made toward serving the multifamily industry when it acquired Central Wholesalers last November.
"Lowe's has long served the multifamily 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 D. 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."
The acquisition is expected to close in Lowe's second fiscal quarter, and it is expected to be accretive to Lowe's earnings in fiscal 2017.
At that point, Lowe's combined multifamily MRO business will include 16 distribution centers, generating more than $400 million in annual sales.
Richard "Rusty" Penick, co-founding partner and CEO of Maintenance Supply Headquarters, added, "We are thrilled to become part of the Lowe's family and have high regard for the team and the company's leadership in the home improvement industry. Our partnership with Lowe's marks an exciting next step in the evolution and growth of Maintenance Supply Headquarters. Like Lowe's, our team shares a commitment to deliver truly exceptional service for our customers, and over the past 10 years, we have been privileged to serve many of the nation's top multifamily property management companies and their communities. We look forward to the new opportunities ahead."
Michael 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.