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The Home Depot(R) Announces Plans to Acquire Apex Supply Company
nasdaq.com
ATLANTA, Dec. 13 /PRNewswire/ -- The Home Depot (NYSE: HD), the world's largest home improvement retailer, today announced it has signed a definitive agreement to acquire for cash privately held Atlanta-based Apex Supply Company, Inc., a wholesale distributor of plumbing, HVAC and other related professional products. Financial terms of the acquisition, which is expected to be completed in January 2000, were not disclosed.
Founded in Atlanta in 1949 by Leonard and Clyde Rodbell, the company has grown under the leadership of the Rodbell family to be one of the country's most respected wholesalers. It has been honored by its industry by being named "Wholesaler of the Year" in both 1998 and 1984. With 525 associates, Apex Supply offers a variety of plumbing and other related professional products through its 21 locations in Georgia, Tennessee and South Carolina.
"With the acquisition of Apex Supply, we will strengthen our ability to reach the professional trades, both residential and commercial," said Arthur M. Blank, president and CEO of The Home Depot. "The pro market is a major growth opportunity for us and Apex Supply's capabilities and knowledge in this area will help us improve our penetration of this business.
"Further, Apex will provide us with the resources to handle special orders for plumbing products more efficiently," Blank explained. "The combination of Home Depot and Apex Supply will result in increased purchasing synergies and expanded product offerings."
Blank added that Apex Supply's principals -- Chairman and Chief Executive Officer Clyde Rodbell and President and Chief Operating Officer Sidney Rodbell -- will be instrumental in expanding The Home Depot's services to the professional customers. Blank also cited the match in values between Home Depot and Apex Supply.
"Apex is known for its commitment to taking care of its customers and associates, and for its training programs and leadership within the industry," Blank said. "It is truly a first-class company. The vision that we share with the Rodbells is to link Apex Supply's capabilities and expertise with Home Depot to increase sales for both entities. The result will be improved products and services to both do-it-yourself and professional customers."
Apex Supply will operate as a wholly owned subsidiary of The Home Depot, and its current management will continue to operate the company. The Rodbells will report to Andy McKenna, senior vice president, strategic business development for Home Depot.
Founded in 1978, Atlanta-based Home Depot currently operates 901 stores in the United States, Puerto Rico, Canada and Chile. For six consecutive years the company has been recognized as America's Most Admired Specialty Retailer by Fortune magazine. Its stock is publicly traded (NYSE: HD) and is included in the Dow Jones Industrial Average and the Standard & Poor's 500 Index.
/CONTACT: Media - Jerry Shields, Sr. Public Relations Manager, 770-384-2741, or jerry_shields@homedepot.com, or Analysts - Kim Shreckengost, Vice President -- Investor Relations, 770-384-2666, both of Home Depot/ |
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