Home improvement retailer Lowe's has announced an agreement to acquire Houston-based Maintenance Supply Headquarters, a distributor of MRO products to the multifamily housing industry, for $512 million.
Maintenance Supply Headquarters has 13 distribution centers that serve customers in 29 geographic areas, mostly in the western, southeastern and south central U.S. The company's portfolio includes more than 5,300 different products and value-added services for maintaining and renovating multifamily properties.
"Purchasing Maintenance Supply Headquarters is an important step in Lowe's strategy to deepen and broaden its relationship with the Pro customer and better serve their needs," Lowe's said in a press release. "When combined with Lowe's November 2016 acquisition of Central Wholesalers, a prominent MRO distributor in the Mid-Atlantic and Northeast, this acquisition will substantially expand Lowe's ability to serve the multifamily housing industry."
Lowe's said the acquisition is expected to be completed in its fiscal second quarter, following regulatory approval. Upon close of the transaction, its combined multifamily MRO business will include 16 distribution centers and generate more than $400 million in annual sales.
"Lowe's has long served the multifamily housing industry through our Pro Services business, and we are excited about the potential to further expand our presence in this highly attractive and growing customer segment," said Lowe's chief development officer and international president Richard Maltsbarger, "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."
Founded in 2006, Maintenance Supply Headquarters' product offering includes appliance, 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.
"We are thrilled to become part of the Lowe's family and have high regard for the team and the company's leadership in the home improvement industry," said Richard "Rusty" Penick, co-founding partner and CEO of Maintenance Supply Headquarters. "Our partnership with Lowe's marks an exciting next step in the evolution and growth of Maintenance Supply Headquarters. Like Lowe's, our team shares a commitment to deliver truly exceptional service for our customers, and over the past 10 years, we have been privileged to serve many of the nation's top multifamily property management companies and their communities. We look forward to the new opportunities ahead."
Thirteen-year Lowe's Veteran Mike Tummillo, who was recently appointed senior vice president of Lowe's pro sales organization, will oversee Maintenance Supply Headquarters and Central Wholesalers. He will also lead Lowe's Pro Services business and Alacrity Services, a supplier of home restoration and repair services. Tummillo is responsible for deepening and broadening Lowe's relationship with Pro customers to better serve their needs.
