Home Depot (NYSE: HD) is a leader in home improvement, with roughly 2,000 locations across the United States and another 300 stores in Canada and Mexico. Through acquisitions and brand development, it has managed to extend its footprint into all parts of the home. Its last major acquisition came in 2015, when it bought Interline Brands for $1.625 billion. As of March 2020, the company had a market capitalization of $200 billion. Its success in part is due to the subsidiaries it owns.

Key Takeaways

  • Home Depot has made strategic acquisitions that have helped catapult the company as a leader in home improvement merchandise.
  • Over the years, Home Depot has purchased many companies, including Home Decorators Collection, Home Mart, Interline Brands, and The Home Way.
  • Home Depot also holds exclusive rights to earn retails sales from brands like Chem-Dry, Behr Paints, and Homelite Corporation.
  • Home Depot also owns many house brands, such as Husky, Hampton Bay, and LifeProof.

Home Decorators Collection

In 2006, Home Depot bought Home Decorators Collection, a catalog and online seller of home decor. The acquisition fell under the company's Home Depot Direct division and doubled the size of its direct-to-consumer business. At the time, Home Decorators Collection had the third-largest house file in the catalog industry. The deal added 65,000 new home decor products to Home Depot's business and gave it access to 3.3 million targeted buyers.

Home Mart

In 2004, Home Depot acquired Home Mart Mexico for an undisclosed sum, which doubled its presence in the country. Home Mart had operated 20 stores, and was Mexico’s second-largest home improvement chain. The acquisition helped Home Depot grow its presence to 39 stores. A key part of the deal was Home Mart's 10 stores in Mexico City. Home Depot had just three stores in the area. At the end of 2019, Home Depot had 125 stores in Mexico, with plans to open four more.

Interline Brands

In 2015, Home Depot paid $1.625 billion for Interline Brands, a leading national distributor and direct marketer of maintenance, repair and operations (MRO) products. Home Depot sought Interline for its distribution network of more than 90 locations across the U.S., Canada and Puerto Rico. This network allowed Interline to reach more than 175,000 customer locations in the institutional, multi-family housing and residential markets. In 2018, Home Depot consolidated its professional customer segments, including Interline and the MRO business, under "The Home Depot Pro" brand.

The Home Way

In 2007, Home Depot decided to expand its global footprint by investing in China. It bought home improvement retailer The Home Way, which operated 12 stores and was based in Tianjin. Details of the transaction were not disclosed. Home Depot had been hoping to grow quickly in China, but the venture soon faltered. By 2012, Home Depot had seven big box stores remaining in the country. It exited China that year and took a $145 million charge.

Your Other Warehouse

In 2001, Home Depot purchased Your Other Warehouse, a plumbing distributor that focused on decorative and commercial plumbing products. Details of the transaction were not disclosed. Home Depot sought Your Other Warehouse for its lineup of 36,000 products from more than 100 plumbing vendors. It said the acquisition would help streamline the special order process for plumbing products inside its stores. Following the purchase, Home Depot gained four Your Other Warehouse locations in Louisiana and Nevada.

Exclusive Brands

In addition to owning multiple companies, Home Depot derives retail sales from several major brands for which it holds exclusive rights. One of these brands is Chem-Dry, an upholstery and carpet cleaning franchise that Home Depot bought in 2005. BEHR paint products, which is owned by Masco, is sold principally through Home Depot stores. Home Depot also has an exclusivity agreement with Techtronic Industries, which manufacturers power tools under several brands such as Homelite and Ryobi. 

House Brands

Home Depot also owns a portfolio of proprietary house brands. This includes the Husky brand of hand tools, storage and work benches, diamond tip screwdrivers and dual beam flashlights; Everbuilt plumbing parts, pumps and garbage disposals; Glacier Bay faucets, sinks, toilets, mirrors and bath vanities; Hampton Bay ceiling fans and lighting fixtures; and LifeProof carpet, tiles and vinyl flooring. These brands are carried only at Home Depot.