Cobb County-headquartered home improvement retail giant The Home Depot announced it has entered into an agreement to acquire International Designs Group (IDG) which owns Construction Resources and other design-oriented subsidiaries. The intent of the acquisition is to increase the company’s reach into the professional construction services market.
The press release described the acquisition as follows:
Construction Resources is a leading distributor of design-oriented surfaces, appliances and architectural specialty products for professional (Pro) contractors focused on renovation, remodeling, residential home building and multi-family.
The Pro spend represents a $475 billion addressable market, and The Home Depot is focused on capturing a larger share by building capabilities to serve Pros of all sizes – from Pros working on smaller jobs to larger, more complex projects. The acquisition combines Construction Resources’ expertise in complex, cross-category professional projects with The Home Depot’s scale, product authority and distribution expertise. With showrooms across the East Coast and Southeast, Construction Resources allows The Home Depot to expand the capabilities it offers Pro customers, many of whom rely on showrooms as part of their consultative approach to complex renovation and remodel jobs.
“Almost all Pros interact with The Home Depot, but their level of engagement varies based on the complexity of their projects. We’re building capabilities to ensure we can serve all Pros across all their project needs – whether we’re the last stop on the way to the jobsite, or their first consideration when building a project design,” said Ted Decker, chair, president and CEO of The Home Depot. “Construction Resources helps us accelerate our Pro growth opportunity with a successful showroom model, an exceptional sales force, and proven, long-term relationships with renovator, remodeler and residential new-construction Pros. We look forward to working with Mitch Hires and the outstanding leadership team at Construction Resources and are excited for the opportunity ahead.”
“We’re thrilled to join The Home Depot team, because their customer- and associate-focused culture aligns so well with Construction Resources’ commitment to excellence in serving our customers,” said Mitch Hires, CEO of Construction Resources. “The Home Depot’s scale, operational expertise and product innovation is unmatched in our industry, and I’m confident the combination of our capabilities will bring tremendous value to the Pros and homeowners who rely on us every day.”
The acquisition is expected to close by the end of 2023.
About The Home Depot
The Home Depot was founded in 1978 after co-founders Bernie Marcus and Arthur Blank were fired from the Handy Andy home improvement chain in southern California.
They decided to go into business together, and opened three stores in Atlanta.
According to company promotional materials:
The Home Depot is the world’s largest home improvement specialty retailer. The Company operates a total of 2,298 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2020, The Home Depot had sales of $132.1 billion and earnings of $12.9 billion. The Company employs approximately 500,000 associates. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.
