Orlando, FL-based Hughes Supply, which is Home Depot's largest acquisition to date, will be part of chain's Home Depot Supply division that serves the business-to-business market including homebuilders, professional contractors, municipalities and maintenance professionals. The addition of Hughes Supply, which has more than 500 locations in 40 states, more than doubles the size of The Home Depot Supply with projected 2006 combined sales approaching $12 billion, according to a company statement.

Chem-Dry, which has nearly 4,000 franchises worldwide including 2,500 in the US, will be part of the chain's At-Home Services division. The division provides "Do-It-For-Me" installations of flooring, fencing, roofing, cabinetry and other interior and exterior services. According to the chain, the At-Home Services segment is one of the fastest growing businesses of The Home Depot, posting double-digit growth throughout 2005. "The Home Depot is the largest installer of flooring in the US, making Chem-Dry a natural extension of this service," the chain says in a company statement.

The Home Depot said it will fund Hughes Supply acquisition, which includes payment of $46.50 per outstanding share and the assumption of $285 million in net debt, with a combination of cash and debt. According to the chain, the deal will be accretive to earnings per share within its first year and is expected to close as soon shareholder and regulatory approvals are achieved.