The Home Depot announced a deal to acquire U.S. Home Systems, Inc. (USHS), according to PR Newswire. Based in Irving, Texas, with over 40 branch offices, USHS has been a provider of kitchen and bath refacing products and services as well as closet and garage organizational systems to Home Depot.
Under the terms of the agreement that was unanimously approved by USHS's board of directors, Home Depot will acquire USHS for $12.50 per share. The acquisition is expected to close by the end of the calendar year.
"The Home Depot has had a long-standing relationship with USHS,” said Kevin Hofmann, senior vice president-Home Services, The Home Depot. “By formally bringing USHS into The Home Depot family, we expect to further enhance our customers' home service experience."
"The USHS board of directors conducted a thorough review of the company's alternatives to enhance stockholder value,” said Murray H. Gross, president, CEO & chairman, USHS. “And we are pleased that this transaction appropriately recognizes the value of USHS' relationships and solutions, while providing our stockholders with an attractive cash premium for their investment."
Now that Home Depot is acquiring their custom line manufacturer, how will this affect the competition for custom remodeling markets? The coming months will reveal what the industry has in store.