Home Depot to buy White Cap Construction

<p>The Home Depot Inc. is buying White Cap Construction Supply Inc. to expand its business among professional customers. Terms were not disclosed.</p><p>The Atlanta-based home improvement retailer said Thursday it will acquire White Cap's 70 branches and 1,720 employees.</p><p>White Cap, based in Costa Mesa, Calif., specializes in selling construction materials, tools, safety equipment and lighting to professional contractors.</p><p>"This acquisition adds new customer channels and product selling opportunities," said Frank Blake, executive vice president for business development for Home Depot. "White Cap represents another step in offering professional customers products and services for the entire construction process."</p><p>White Cap, founded in 1976, delivers about 60 percent of its products to job sites, and the other 40 percent of purchases are made at the branch locations.</p><p>"White Cap is the clear leader in this highly fragmented market, and we're pleased that its leadership team will continue to play an integral role in the organization," said Jim Stoddart, president of Home Depot Supply, the division focused on business-to-business customers.</p><p>The agreement is expected to close within a month, the companies said.</p><p>In morning trading on the New York Stock Exchange, Home Depot shares were down 29 cents at $34.97.</p>

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