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Home Depot Makes Two Buys

ATLANTA-The home improvement retailer acquires Hughes Supply Inc. for $3.47 billion and Chem-Dry for an undisclosed amount.

By Jennifer D. Duell | Updated on January 11, 2006

ATLANTA-The Home Depot, already the number one home improvement retailer in the nation, has expanded its already extensive reach by absorbing one of the largest distributors of construction, repair and maintenance products, Hughes Supply Inc., for $3.47 billion. The chain also has acquired Chem-Dry, a franchisor for one of the largest carpet and upholstery cleaning and service provider networks in the United States, for an undisclosed amount.

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.

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