Lowe’s Companies Inc. announced May 18 that it is buying a Texas distributor in an effort to grow its pro business.
The distribution company is Maintenance Supply Headquarters, a supplier of maintenance, repair and operations products for businesses in the multifamily housing industry, according to Lowe’s.
The retailer expects to finalize the $512 million purchase after receiving regulatory approval and during Lowe’s second fiscal quarter, which ends in July.
“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,” says Richard D. Maltsbarger, Lowe’s chief development officer and president of Lowe’s international division.
Based in Houston, Maintenance Supply Headquarters operates 13 distribution centers and serves customers in 29 geographic areas, primarily in the western, southeastern and south central U.S. The company offers more than 5,300 products, as well as 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 professional customers and better serve their needs, according to Lowe’s.
Maintenance Supply, combined with Lowe’s November 2016 acquisition of Central Wholesalers—a maintenance, repair and operations distributor in the mid-Atlantic and Northeast—will grow Lowe’s ability to serve the multifamily housing industry.
“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 [maintenance, repair and operations] customers,” Maltsbarger says.
The combined businesses will include 16 distribution centers in regions throughout the nation and will generate more than $400 million in annual sales, according to Lowe’s.
Founded in 2006, Maintenance Supply Headquarters’ product offering includes appliances; plumbing; heating, ventilation and air conditioning; 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. Tummillo, a 13-year Lowe’s veteran and recently appointed senior vice president of Lowe’s pro sales business, will oversee Maintenance Supply Headquarters and Central Wholesalers.