Home Depot Buys Hughes Supply for $3.47B
Atlanta, The Home Depot announced an agreement to acquire the Orlando, Fla.-based construction, repair and maintenance-products distributor Hughes Supply Inc. The deal is valued at $3.47 billion, including the assumption of $285 million in net debt.
The addition of Hughes Supply will double the size of The Home Depot Supply division. Combined annual sales are estimated to be near $12 billion. Hughes, which operates more than 500 stores in 40 states, gathered revenues of $4.4 billion in its last fiscal year.
In a separate deal, Home Depot purchased Chem-Dry, a Logan, Utah-based provider of carpet and upholstery cleaning. Terms of the deal are undisclosed. Home Depot said it has not yet decided if the Chem-Dry locations will carry The Home Depot name.
Casey’s Acquires Gas ‘N Shop
Ankeny, Iowa, Convenience store chain Casey’s General Stores has completed its acquisition of 51 Gas ‘N Shop stores, Lincoln, Neb.
Casey’s will close 11 of the Gas ‘N Shop locations in the expectation that sales will transfer to the Casey’s stores in the area. The remaining 40 will be re-branded as Casey’s.
Saks Seeks to Sell Parisian
New York City, The shedding of brands at Saks Inc. may soon include a sale of the 40-unit Parisian division, which the company put up for sale on Monday. Saks Inc. in July sold Proffitt’s/McRae’s to Belk Inc. for $623 million. Saks also hopes to close soon on a $1.85 billion bid to sell its Northern Department Stores Group, which includes Carson Pirie Scott & Co. and Berngner’s, to Bon-Ton Stores.
Parisian is on pace to a record $700 million in sales this year. If it is sold, Saks would be left with 55 Saks Fifth Avenue stores, 50 Saks Off 5th outlet stores and saks.com. The chain also operates 58 Club Libby Liu stores.
As part of the plan to restructure, Saks named Stephen Sadove, vice chairman and COO, to the position of chief executive of the company. He replaces 16-year veteran R. Brad Martin, who will hold on to his chairman post until the end of the 2006 fiscal year.