Lowe's to acquire Maintenance Supply Headquarters
Lowe's Companies has agreed to acquire Maintenance Supply Headquarters, a distributor of MRO products to the multifamily housing industry, for a total transaction value of $512 million.
Based in Houston, Maintenance Supply Headquarters operates 13 distribution centers serving customers in 29 geographic areas, primarily in the western, southeastern and south central U.S., with a portfolio of more than 5,300 products and value-added services for maintaining and renovating multifamily properties.
The acquisition is expected to be completed in Lowe's second fiscal quarter, following the receipt of regulatory approval and satisfactory completion of customary closing conditions.
Purchasing Maintenance Supply Headquarters fits into Lowe's strategy to deepen and broaden its relationship with the professional customer. When combined with Lowe's November 2016 acquisition of Central Wholesalers, an MRO distributor in the Mid-Atlantic and Northeast, this acquisition will expand Lowe's ability to serve the multifamily housing industry.
"Lowe's has long served the multifamily housing industry through our Pro Services business, and we are excited about the potential to further expand our presence in this highly attractive and growing customer segment," said Richard D. Maltsbarger, Lowe's chief development officer and president of international. "Together, Maintenance Supply Headquarters and Central Wholesalers will expand our capabilities in serving this key segment while strengthening our platform for future growth with enhanced product and service offerings for MRO customers."
Upon the close of the Maintenance Supply Headquarters transaction, Lowe's combined multifamily MRO business will include 16 distribution centers generating more than $400 million in annual sales.
Richard "Rusty" Penick, co-founding partner and CEO of Maintenance Supply Headquarters, added, "We are thrilled to become part of the Lowe's family and have high regard for the team and the company's leadership in the home improvement industry. Our partnership with Lowe's marks an exciting next step in the evolution and growth of Maintenance Supply Headquarters. Like Lowe's, our team shares a commitment to deliver truly exceptional service for our customers, and over the past 10 years, we have been privileged to serve many of the nation's top multifamily property management companies and their communities. We look forward to the new opportunities ahead."
Founded in 2006, Maintenance Supply Headquarters' product offering includes appliance, plumbing, HVAC, lighting, hardware, electrical and other products for maintaining and renovating multifamily properties, as well as services such as renovation project support, custom fabrication and educational classes.
Michael A. (Mike) Tummillo, a 13-year Lowe's veteran and recently appointed senior vice president of Lowe's pro sales organization, will oversee Maintenance Supply Headquarters and Central Wholesalers. He will also lead Lowe's Pro Services business and Alacrity Services, a supplier of home restoration and repair services.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
