Lowe’s completes acquisition of Maintenance Supply Headquarters
Lowe's Companies has completed its previously announced acquisition of Maintenance Supply Headquarters for $512 million.
"We are delighted to officially welcome Maintenance Supply Headquarters and their talented team into the Lowe's family," said Michael Tummillo, senior vice president of Lowe's pro sales. "Together, Maintenance Supply Headquarters and Central Wholesalers expand Lowe's ability to serve the highly attractive and growing multifamily housing industry while strengthening our foundation for future growth with enhanced product and service offerings. With this latest transaction, we look forward to delivering even more value for our pro customers."
Houston, Texas-based Maintenance Supply Headquarters is a distributor of maintenance, repair and operations (MRO) products serving the multifamily housing industry.
The deal is a next logical step for Lowe's, which acquired Central Wholesalers, an MRO distributor in the Mid-Atlantic and Northeast, in November 2016. The move is part of an overall drive to broaden Lowe's relationship with pro customers and better serve their needs.
Maintenance Supply Headquarters operates 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.
The company was founded in 2006 and features a product offering that includes appliances, 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.
With this acquisition under its belt, Lowe's multifamily MRO business now includes 16 distribution centers in attractive regions throughout the nation, generating more than $400 million in incremental annual sales.
Sears Canada enters bankruptcy protection
An 18-month long reinvention process underway at Sears Canada couldn’t keep the company from seeking legal protection from its creditors.
Sears Canada, which spun off from Sears Holdings back in 2012, has been granted protection from its creditors under Canada’s Creditors Arrangement Act. It has received C$450 million in debtor-in-possession financing.
Sears Canada said it hopes to exit its bankruptcy protection “as soon as possible in 2017.”
As it announced the CCAA proceedings, the company also announced the closing of 20 full-line locations, plus 15 "Sears Home" stores, 10 "Sears Outlet" and 14 "Sears Hometown" locations, as well as a corresponding planned reduction in its workforce of approximately 2,900 positions across its retail network and at its corporate head office in Toronto.
“The continued liquidity pressures facing the company as well as legacy components of its business are preventing it from making further progress in its brand reinvention efforts and from restructuring its legacy assets and businesses, which is why it sought creditor protection under the CCAA,” the company said.
Progress from the reinvention, according to management, over the past 18 months included a rebuilt front- and back-end technology platform, a redefined brand position, a revamped product assortment and a “rebooted customer experience.” These factors contributed to the company’s reported increases in same-store sales in each of its past two quarters.
In its most recent quarter, Sears Canada posted a loss of C$144.4 million as revenue declined 15.2% to $505.5 million. Same-store sales increased 2.9%.
The company says it will continue executing its reinvention and continue operating stores and the company’s website during the CCAA action.