Home Depot to Buy U.S. Home Systems for $93.8 Million
Home Depot Inc. (HD), the largest U.S. home-improvement retailer, agreed to buy U.S. Home Systems Inc. for about $12.50 a share to add products used in remodeling kitchens and bathrooms.
The agreement has been unanimously approved by U.S. Home Systems’ board and is expected to be completed this year, Atlanta-based Home Depot said today in a statement. The offer price is 38 percent higher than U.S. Home Systems’ closing price yesterday.
The acquisition would give Home Depot a supplier of cabinet refacing products, bath-tub liners and closet-organization systems. The retailer said in May that sales this year may slow from the first quarter after warmer-than-normal weather pulled forward purchases of plants and gardening equipment.
The deal would value Irving, Texas-based U.S. Home Systems at about $93.8 million, based on 7.5 million shares outstanding, according to data compiled by Bloomberg.
U.S. Home Systems advanced 38 percent to $12.53 at the close in New York. Home Depot rose 0.8 percent to $52.40.
To contact the reporter on this story: Chris Burritt in Greensboro at email@example.com
To contact the editor responsible for this story: Robin Ajello at firstname.lastname@example.org