Home Depot announced May 6 it is buying out California-based White Cap Construction Supply.
According to Home Depot’s leadership, the Atlanta-based retail company will take over White Cap’s 70 branches and 1,720 employees. The company does not, however, expect a banner or name change on White Cap’s storefronts.
Home Depot executive vice president for business development, Frank Blake, told the Associated Press the acquisition provides new opportunities to sell products and adds new channels for customers. Unlike Home Depot’s focus on the general homeowner market, White Cap specializes in selling tools, materials, safety equipment and lighting to professional contractors, who primarily work in new-home construction. Approximately 60 percent of the products sold are delivered directly to the jobsite, while 40 percent of sales are made at the store’s branches. With sales of about $500 million, the company is one of the larger retailers of its kind, according to Home Depot.
The acquisition agreement between Home Depot and White Cap is expected to close within a month.