As a worldwide leader in providing home improvement goods, The Home Depot Inc. (NYSE: HD) has a diversified chain of products and locations. Through acquisitions and brand development, it carries numerous items for sale in areas all around the world. Although Home Depot’s main acquisition period occurred in the 2000s, it made a $1.63 billion acquisition in July 2015 that further solidified itself as a global industry leader. The company, which recently reported a market capitalization of almost $170 billion, experiences success, in part, due to the subsidiaries that it owns.
Home Decorators Collection
In 2006, Home Depot agreed to buy Home Decorators Collection, a leader in catalog as well as online sales of home decor items. The acquisition doubled the size of Home Depot’s direct-to-consumer business, as the new company operates out of the Home Depot Direct division. Home Decorators Collection had the third-largest house file in the catalog industry at the time of the deal and increased its catalog with 65,000 new home decor products.
In 2004, Home Depot doubled its presence in Mexico through the acquisition of Home Mart Mexico. Home Mart was the country’s second-largest home improvement chain behind Home Depot. It operated 20 stores in Mexico, and after the deal, Home Depot had 39 stores in central and northern Mexico. The key piece of the deal was the 10 new stores in metropolitan Mexico City, as Home Depot previously had only three stores in the area. Home Mart was established in 1993, and the financial sum paid to the group of private Mexican owners was not disclosed.
The world’s largest home improvement retailer completed a $1.63 billion acquisition of Interline Brands, Inc., a leading national distributor and direct marketer of maintenance, repair and operations products. Interline’s extensive local distribution network of more than 90 locations across the United States, Canada and Puerto Rico allowed for the delivery of its maintenance, repair and operations products. Headquartered in Florida, Interline serves more than 175,000 customer locations and holds market presence in institutional, multi-family housing and residential markets. The deal boosted Home Depot’s Pro division that caters to professional contractors and builders.
The Home Way
Home Depot, as part of its global expansion strategy, entered Chinese markets through its acquisition of The Home Way. The Home Way, a home improvement retailer founded in 1996, is based in Tianjin. Its 12 stores, averaging 90,000 square feet of selling space, were located in six Chinese cities. The financial terms of the deal were not disclosed.
Your Other Warehouse
Home Depot purchased a master distributor of faucets, fixtures, bath accessories and kitchen accessories called Your Other Warehouse. Based in Baton Rouge, with a second facility in Las Vegas, Your Other Warehouse was a Home Depot vendor prior to the purchase. It distributes faucets, sinks, accessories and commercial fixtures. The company also retails exclusive brands. Home Depot’s motivation for the deal was to expand its wholesale plumbing industry presence. As part of the deal, Home Depot received the mailing list of 3.3 million customers of Home Decorators Collection, which is headquartered in St. Louis, Missouri. The financial details of the acquisition were not released to the public.
In addition to owning multiple companies, Home Depot owns exclusive rights to earn retail sales from several major brands. Founded in 1977, Chem-Dry was purchased by the company in 2006. It is a carpet-cleaning franchise based in Utah. Behr Process Corporation manufactures house paints, primers, stains and surface preparation products sold exclusively at Home Depot. Homelite Corporation is a power equipment manufacturer of chainsaws, leaf blowers and trimmers that are sold at Home Depot.
Home Depot also owns various house brands. Husky is a manufacturer of hand tools, pneumatic tools and tool storage devices. It was introduced in 1924. Glacier Bay offers faucets, sinks, toilets, mirrors and bath vanities. Hampton Bay retails ceiling fans and lighting fixtures, while Commercial Electric develops recessed lighting, commercial lighting and electrical tools. These brands are carried only at Home Depot locations.