Acquisition Expected to Accelerate
Capabilities to Better Serve the Pro Customer's Complex Project
Needs
ATLANTA, Nov. 20,
2023 /PRNewswire/ -- The Home Depot®, the
world's largest home improvement retailer, has entered into a
definitive agreement to acquire International Designs Group (IDG),
a platform company that owns and operates Construction Resources
and other design-oriented subsidiaries. Construction Resources
is a leading distributor of design-oriented surfaces,
appliances and architectural specialty products for professional
(Pro) contractors focused on renovation, remodeling, residential
home building and multi-family.
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The Pro spend represents a $475
billion addressable market, and The Home Depot is focused on
capturing a larger share by building capabilities to serve Pros of
all sizes – from Pros working on smaller jobs to larger, more
complex projects. The acquisition combines Construction Resources'
expertise in complex, cross-category professional projects with The
Home Depot's scale, product authority and distribution expertise.
With showrooms across the East Coast and Southeast, Construction
Resources allows The Home Depot to expand the capabilities it
offers Pro customers, many of whom rely on showrooms as part of
their consultative approach to complex renovation and remodel
jobs.
"Almost all Pros interact with The Home Depot, but their level
of engagement varies based on the complexity of their projects.
We're building capabilities to ensure we can serve all Pros across
all their project needs – whether we're the last stop on the way to
the jobsite, or their first consideration when building a project
design," said Ted Decker, chair,
president and CEO of The Home Depot. "Construction Resources helps
us accelerate our Pro growth opportunity with a successful showroom
model, an exceptional sales force, and proven, long-term
relationships with renovator, remodeler and residential
new-construction Pros. We look forward to working with Mitch Hires and the outstanding leadership team
at Construction Resources and are excited for the opportunity
ahead."
"We're thrilled to join The Home Depot team, because their
customer- and associate-focused culture aligns so well with
Construction Resources' commitment to excellence in serving our
customers," said Mitch Hires, CEO of
Construction Resources. "The Home Depot's scale, operational
expertise and product innovation is unmatched in our industry, and
I'm confident the combination of our capabilities will bring
tremendous value to the Pros and homeowners who rely on us every
day."
The Home Depot agreed to acquire IDG from Mill Point Capital
LLC, a private equity firm focused on control-oriented investments
in the business services, industrials and IT services sectors. The
acquisition is expected to close by the end of 2023.
The Home Depot is building a unique, interconnected
ecosystem to help Pros build their businesses. The company has
comprehensive offerings and capabilities for Pros, including its
ProXtra loyalty program, job-lot quantities of the right assortment
of brands, digital tools and personalized experiences, a variety of
fulfillment options with reliable delivery and prioritization for
Pros, a dedicated salesforce, and other value-added offerings like
credit, tool rental, quote center and more. For more information,
visit www.homedepot.com/ProXtra or visit the Pro Desk at
a local Home Depot store.
About The Home Depot
The Home Depot is the world's largest home improvement specialty
retailer. At the end of the third quarter of fiscal year 2023, the
company operated a total of 2,333 retail stores in all 50 states,
the District of Columbia, Puerto Rico, the U.S.
Virgin Islands, Guam, 10 Canadian provinces and Mexico.
The company employs approximately 470,000 associates. The Home
Depot's stock is traded on the New York Stock Exchange (NYSE: HD)
and is included in the Dow Jones industrial average and Standard
& Poor's 500 index.
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SOURCE The Home Depot