Home Depot Supply News: 12 Things for HDS Stock Investors to Know About the Home Depot Deal | InvestorPlace Skip to content
Copyright © 2020 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.
Millions of people will miss this opportunity. Will you stay?
On November 19, Eric Fry and Louis Navellier will reveal how a small group of stocks can earn you $ 100,000 in 12 months. You will get the name of their number 1 FREE during the event.
Thurs 19 November at 19:00 ET
Home / Stock Choices / Hot Stocks / Home Depot Supply News: 12 Things for HDS Stock Investors to Know About Home Depot Deal HD Pays $ 8 Billion for HDS By William White, InvestorPlace Writer 16 Nov 2020, 10:29 AM EST 16 November 2020
HD Supply (NASDAQ: HDS) news for Monday includes Home Depot (NYSE: HD) announcing plans to acquire the company.
Source: Jonathan Weiss / Shutterstock.com
Here’s what news investors need to know about the deal between HD Supply and Home Depot.
Home Depot plans to acquire HD Supply for a total of $ 8 billion. It will do so by buying all the outstanding shares of the HDS stock for $ 56 each. The offer price is a premium of 25% compared to the closing price of the HDS share on Friday. HD will pay owners cash for their shares in HDS shares. It plans to use cash on hand and debt to finance the transaction. A press release from Home Depot states that the company expects that the acquisition of HD Supply will increase earnings per share from the financial year 2021. The deal still needs to be approved by supervisory authorities and shareholders before it can be completed. Home Depot says it expects to complete the deal during the fiscal fourth quarter of 2020, which ends on January 31, 2021. It is worth noting that Home Depot acquires HD delivery after selling the company in 2007. This came after buying the company ten years earlier when it was under the name maintenance warehouse. After the sale, HD Supply began to be announced a few years later in 2013. Home Depot says that the acquisition of HD Supply will make it “a leading supplier in the MRO market”.
The HDS share increased by 24.3% and the HD share increased almost 1% as of Monday morning.
At the time of publication, William White held (neither directly nor indirectly) any positions in the securities mentioned in this article.
© 2020 InvestorPlace Media, LLC
Subscriber Log in
Not a premium subscriber yet?
Subscribe Close login mode