MOORESVILLE, N.C., June 26, 2017 /PRNewswire/ -- Lowe's
Companies, Inc. (NYSE: LOW) today announced it has completed its
$512 million acquisition of
Maintenance Supply Headquarters, a leading distributor of
maintenance, repair and operations (MRO) products serving the
multifamily housing industry.
The acquisition is a significant step in Lowe's strategy to
deepen and broaden its relationship with pro customers and better
serve their needs.
Based in Houston, Texas,
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. In November 2016, Lowe's acquired Central
Wholesalers, a prominent MRO distributor in the Mid-Atlantic and
Northeast.
With the acquisitions of Maintenance Supply Headquarters and
Central Wholesalers, Lowe's multifamily MRO business now includes
16 distribution centers in attractive regions throughout the nation
generating more than $400 million in
incremental annual sales.
"We are delighted to officially welcome Maintenance Supply
Headquarters and their talented team into the Lowe's family," said
Michael Tummillo, senior vice
president of Lowe's pro sales. "Together, Maintenance Supply
Headquarters and Central Wholesalers expand Lowe's ability to serve
the highly attractive and growing multifamily housing industry
while strengthening our foundation for future growth with enhanced
product and service offerings. With this latest transaction, we
look forward to delivering even more value for our pro
customers."
Richard "Rusty" Penick, co-founding partner and CEO of
Maintenance Supply Headquarters, added, "Today marks the beginning
of an exciting next chapter for Maintenance Supply Headquarters. We
are thrilled to join Lowe's and work together to continue to
deliver exceptional service for our customers. We have had the
honor of serving many of the nation's top multifamily property
management companies and their communities over the past 10 years,
and we look forward to building on this legacy."
Founded in 2006, Maintenance Supply Headquarters' broad product
offering includes appliances, 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.
Goldman Sachs & Co. LLC served as financial advisor to
Lowe's and Hunton & Williams LLP served as legal advisor.
Crutchfield Capital Corporation served as financial advisor to
Maintenance Supply Headquarters and Porter Hedges LLP served as
legal advisor.
About Lowe's
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 50
home improvement company serving more than 17 million customers a
week in the United States,
Canada and Mexico. With
fiscal year 2016 sales of $65.0
billion, Lowe's and its related businesses operate or
service more than 2,370 home improvement and hardware stores and
employ over 290,000 people. Founded in 1946 and based in
Mooresville, N.C., Lowe's supports
the communities it serves through programs that focus on K-12
public education and community improvement projects. For more
information, visit Lowes.com.
Forward Looking Statement
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements including words such as "believe", "expect",
"anticipate", "plan", "desire", "project", "estimate", "intend",
"will", "should", "could", "would", "may", "strategy", "potential",
"opportunity" and similar expressions are forward-looking
statements. Forward-looking statements involve estimates,
expectations, projections, goals, forecasts, assumptions, risks and
uncertainties. Forward-looking statements include, but are not
limited to, statements about future financial and operating
results, Lowe's plans, objectives, business outlook, expectations
and intentions, expectations for sales growth, comparable sales,
earnings and performance, shareholder value, capital expenditures,
cash flows, the housing market, the home improvement industry,
demand for services, share repurchases, Lowe's strategic
initiatives, including those regarding the acquisition by Lowe's
Companies, Inc. of Maintenance Supply Headquarters and
the expected impact of the transaction on Lowe's strategic and
operational plans and financial results, and any statement of an
assumption underlying any of the foregoing and other statements
that are not historical facts. Although we believe that the
expectations, opinions, projections and comments reflected in these
forward-looking statements are reasonable, such statements involve
risks and uncertainties and we can give no assurance that such
statements will prove to be correct. Actual results may differ
materially from those expressed or implied in such statements.
A wide variety of potential risks, uncertainties and other
factors could materially affect our ability to achieve the results
either expressed or implied by these forward-looking statements
including, but not limited to, changes in general economic
conditions, such as the rate of unemployment, interest rate and
currency fluctuations, fuel and other energy costs, slower growth
in personal income, changes in consumer spending, changes in the
rate of housing turnover, the availability of consumer credit and
of mortgage financing, inflation or deflation of commodity prices,
and other factors that can negatively affect our customers, as well
as our ability to: (i) respond to adverse trends in the housing
industry, such as a demographic shift from single family to
multifamily housing, a reduced rate of growth in household
formation, and slower rates of growth in housing renovation and
repair activity, as well as uneven recovery in commercial building
activity; (ii) secure, develop, and otherwise implement new
technologies and processes necessary to realize the benefits of our
strategic initiatives focused on omni-channel sales and marketing
presence and enhance our efficiency; (iii) attract, train, and
retain highly-qualified associates; (iv) manage our business
effectively as we adapt our traditional operating model to meet the
changing expectations of our customers; (v) maintain, improve,
upgrade and protect our critical information systems from data
security breaches and other cyber threats; (vi) respond to
fluctuations in the prices and availability of services, supplies,
and products; (vii) respond to the growth and impact of
competition; (viii) address changes in existing or new laws or
regulations that affect consumer credit, employment/labor, trade,
product safety, transportation/logistics, energy costs, health
care, tax or environmental issues; (ix) positively and effectively
manage our public image and reputation and respond appropriately to
unanticipated failures to maintain a high level of product and
service quality that could result in a negative impact on customer
confidence and adversely affect sales; and (x) effectively manage
our relationships with selected suppliers of brand name products
and key vendors and service providers, including third party
installers. With respect to the acquisition discussed herein
specifically, potential risks include: the effect of the
announcement of the acquisition on Lowe's and Maintenance Supply
Headquarters' strategic relationships, operating results and
businesses generally; significant transaction costs or unknown
liabilities; the failure to successfully integrate personnel and
financial, IT and other systems; retaining management and other
critical personnel; conditions in the maintenance, repair and
operations market; and failure to realize all or some of the
expected benefits of the transaction. For more information about
these and other risks and uncertainties that we are exposed to, you
should read the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations—Critical
Accounting Policies and Estimates" included in our most recent
Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission (the "SEC") and the description of material
changes thereto, if any, included in our Quarterly Reports on Form
10-Q or subsequent filings with the SEC.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by the foregoing
cautionary statements. The foregoing list of important factors that
may affect future results is not exhaustive. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. All such forward-looking
statements are based upon data available as of the date of this
release or other specified date and speak only as of such date. All
subsequent written and oral forward-looking statements attributable
to us or any person acting on our behalf about any of the matters
covered in this release are qualified by these cautionary
statements and in the "Risk Factors" included in our most recent
Annual Report on Form 10-K and the description of material changes
thereto, if any, included in our Quarterly Reports on Form 10-Q or
subsequent filings with the SEC. We expressly disclaim any
obligation to update or revise any forward-looking statement,
whether as a result of new information, change in circumstances,
future events or otherwise, except as may be required by law.
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SOURCE Lowe's Companies, Inc.