News: Home Depot Continues Acquisitions

AHJNews02Aug06
Home Depot continues its vertical integration through acquisitions. The Atlanta-based retail giant has purchased Forest Products Supply, a 32-year-old wood manufacturing company based here, with 370 employees. Home Depot will run it under its Home Depot Supply division, which in recent years has been growing aggressively.

The additions of Florida-based distributor, Hughes Supply, and pro dealer Cox Lumber has positioned Home Depot Supply to reach $12 billion in revenue this year. By 2010, Home Depot Supply expects to be generating sales between $23 billion and $28 billion out of 1,500 locations, which would account for almost 20% of Home Depot’s total sales.

Online sales will be a cornerstone of Home Depots expansion plans for the next five years. To maximize the high traffic online, the world’s biggest home improvement retailer is seeking added revenue from its key suppliers by having them advertise on online. The giant home improvement retailer is negotiating with vendors to place ads on its main website, www.homedepot.com, to reach more than four million consumers each week.