Home Depot makes a big purchase

By Plant Engineering Staff January 13, 2006

Industry officials are taking note of this week’s announcement by The Home Depot Inc. that it will buy product distributor Hughes Supply Inc. for about $3.2 billion.

Hughes Supply is a distributor of construction, repair and maintenance products. While construction distribution has a small impact on the industrial sector, the rapidly-growing industrial maintenance sector could be a future growth target for Home Depot, providing a challenge for existing industrial maintenance suppliers.

In the short-term, Home Depot gets a boost for its already-growing home supply division, aided by Hughes’ existing 500 location network in 40 states.

“By acquiring Hughes Supply, a company with a long and established reputation for excellence and service, we continue to execute our growth strategy laid out five years ago to enhance our core retail business, extend our business into adjacent areas and expand into new markets,” said Bob Nardelli, chairman, president and chief executive of Home Depot.