Home Depot to buy HD Supply in $8bn deal

US home improvement retailer Home Depot has agreed to buy HD Supply Holdings, a distributor of maintenance, repair and operations (MRO) products to the multifamily and hospitality end markets, in a $8bn deal.

Under the terms of the agreement, Home Depot will pay $56 per share in cash for HD Supply. Home Depot said the acquisition will position it as a premier provider in the MRO marketplace.

Chairman and chief executive officer Craig Menear said: "The MRO customer is highly valued by The Home Depot, and this acquisition will position the company to accelerate sales growth by better serving both existing and new customers in a highly fragmented $55bn marketplace.

"HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the US and Canada."

Shares of HD Supply surged on the news and by 1600 GMT were trading up 24% at $55.66.