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Lowe's To Buy MRO Distributor Maintenance Supply Headquarters For $512 Mln

Home improvement retailer Lowe's Co. (LOW) announced Thursday that it has entered into a definitive agreement to acquire Maintenance Supply Headquarters for a total transaction value of $512 million.

The acquisition is expected to be completed in Lowe's second fiscal quarter, following the receipt of regulatory approval and satisfactory completion of customary closing conditions.

The transaction would be accretive to Lowe's earnings in fiscal 2017.

Houston, Texas-based Maintenance Supply is a distributor of maintenance, repair and operations or MRO products to the multifamily housing industry. The company operates 13 distribution centers and has a portfolio of more than 5,300 products and value-added services.

Upon the close of the transaction, Lowe's combined multifamily MRO business will include 16 distribution centers in attractive regions throughout the nation generating more than $400 million in annual sales.

Richard Maltsbarger, Lowe's chief development officer and president of international, said, "Together, Maintenance Supply Headquarters and Central Wholesalers will expand our capabilities in serving this key segment while strengthening our platform for future growth with enhanced product and service offerings for MRO customers."

by RTTNews Staff Writer

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