MOORESVILLE, N.C., May 18, 2017 /PRNewswire/ -- Lowe's
Companies, Inc. (NYSE: LOW) today announced it has entered into a definitive agreement to acquire Maintenance Supply
Headquarters, a leading distributor of maintenance, repair and operations (MRO) products to the multifamily housing industry, for
a total transaction value of $512 million. 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.
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 is expected to be accretive to Lowe's earnings in fiscal
2017.
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. 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 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 Richard D. Maltsbarger, Lowe's chief development officer and president of international. "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."
Upon the close of the Maintenance Supply Headquarters 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 "Rusty" Penick, co-founding partner and CEO of Maintenance Supply Headquarters, added, "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. 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."
Founded in 2006, Maintenance Supply Headquarters' broad 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.
Michael A. (Mike) Tummillo, a 13-year Lowe's veteran and 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 leading 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.
Goldman Sachs & Co. LLC is acting as financial advisor to Lowe's, while Hunton & Williams LLP is acting as legal
advisor. Crutchfield Capital Corporation is acting as financial advisor to Maintenance Supply Headquarters, while Porter Hedges
LLP is acting 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 2,365 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 possibility that the acquisition will not close or that the closing may be delayed; the risk that required
regulatory approvals are not obtained or that such approvals are delayed or subject to conditions that are not anticipated; 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.