Lowe's says no talks with HD Supply
Lowe’s said it is not in talks with HD Supply Holdings, despite a report published by Bloomberg.
Citing “people familiar with the matter,” Bloomberg reported on Nov. 9 that talks are currently ongoing between the two companies.
But Lowe's issued a statement regarding "market rumors" and said the report is false.
"While it is the company's practice to not comment on rumors or speculation, we believe it is important to note that Lowe's is not in discussions with HD Supply and we have not plans to pursue a transaction with them," Lowe's said in a press release.
Additionally, Lowe's said that it does not intend to make future statements regarding the matter.
HD Supply was founded in 1974 as Maintenance Warehouse before being purchased by Lowe’s biggest rival, The Home Depot, in 1997. But in 2007, HD Supply was sold to private equity inventors before going public in 2013.
Earlier this year, HD Supply sold off its White Cap construction business to Clayton, Dubilier & Rice for a purchase price of $2.9 billion in cash. Clayton, Dubliner & Rice also happens to be one of the investment groups that purchase HD Supply from The Home Depot in 2007.
Lowe’s has placed added emphasis on its pro services, including serving commercial customers, in the last two years.
Given HD Supply’s focus on professional customers in maintenance, repair and operations, a merger would give Lowe’s another major foothold in the market in regard to serving facilities maintenance pros.
HD Supply’s product offering assortment includes appliances, cleaning supplies, HVAC, paint, plumbing, and tools along with products in dozens of other categories.
In September, HD Supply reported that second quarter sales fell 4.4% to $1.6 billion while its net income declined 3% to $131 million. Sales for 2019 increased about 1.6% to $6.1 billion.
Based in Atlanta, HD Supply operates about 270 branches and more than 40 distribution centers in the United States and Canada. The company has more than 11,000 associates.
Mooresville, N.C.-based Lowe’s had sales of $72.1 billion last year and operates more than 2.200 locations in the United States and Canada.