M&A Deal Summary

The Home Depot Acquires White Cap Industries

On May 1, 2004, The Home Depot acquired distribution company White Cap Industries from KRG Capital Partners, Leonard Green & Partners and Argentum Capital Partners

Acquisition Highlights
  • This is The Home Depot’s 1st transaction in the Distribution sector.
  • This is The Home Depot’s 1st transaction in the United States.
  • This is The Home Depot’s 1st transaction in California.

M&A Deal Summary

Date 2004-05-01
Target White Cap Industries
Sector Distribution
Buyer(s) The Home Depot
Sellers(s) KRG Capital Partners
Leonard Green & Partners
Argentum Capital Partners
Deal Type Add-on Acquisition

Target

White Cap Industries

Costa Mesa, California, United States
website
White Cap, with 42 branch locations throughout the Western U.S. as of March 2000, is the largest domestic specialty supplier of tools and materials to industrial and commercial construction contractors. White Cap provides one-stop, high service solution to large professional contractors that demand a high service component from their supplier relationships. These services include expert technical advice (on and off the job site) during planning and construction, high order fill rates and innovative products that benefit the construction process and simplify the ordering, tracking and administration of their projects.

Search 192,297 Deals Now

SEARCH BY

  • Buyer Type (PE or Strategic)
  • Deal Size ($10M to $10B+)
  • Sector (60 Sectors)
  • Deal Type
  • Geography
  • & More

Try For Free 7-Day Free Trial

Buyer(S) 1

Buyer

The Home Depot

Atlanta, Georgia, United States

website


Category Company
Founded 1978
Sector Retail
Employees475,000
Revenue 157.4B USD (2023)
DESCRIPTION
Entrance to Home Depot's corporate headquarters in Atlanta, Georgia.
Entrance to Home Depot's corporate headquarters in Atlanta, Georgia.

The Home Depot is a home improvement retailer. Home Depot operates more than 2,000 stores and home improvement centers across North America. The Home Depot was founded in 1978 and is based in Atlanta, Georgia.


DEAL STATS #
Overall 1 of 18
Sector (Distribution) 1 of 9
Type (Add-on Acquisition) 1 of 16
State (California) 1 of 2
Country (United States) 1 of 18
Year (2004) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-30 Utility Supply of America

Waukegan, Illinois, United States

Utility Supply of America, Inc. (dba USABluebook) is a catalog distributor serving the maintenance, repair, and operations (MRO) supplies and equipment needs of the water and wastewater treatment industry.

Buy -

Seller(S) 3

SELLER

KRG Capital Partners

Denver, Colorado, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1996
PE ASSETS 4.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

KRG Capital Partners is a private equity investment firm focused on acquiring controlling interests in middle-market companies. Prospective transaction situations include owner recapitalizations, management buyouts of private companies, mangement buyouts of corporate divisions, outright purchases, and family successions. Target companies typically generate sales of $35 to $400 million and EBITDA of $10 to $100 million. Sectors of interest include healthcare services, medical technology and life sciences; business services and distribution; construction materials and services; transportation services; marketing; specialty finance and insurance; aerospace, defense, and government services; energy services and products; and infrastructure. KRG primarily looks for opportunities located in the US and Canada but will selectively consider investments in Western Europe. KRG was formed in 1996 and is based in Denver, Colorado with additional offices in Mill Valley, California and Las Vegas, Nevada.


DEAL STATS #
Overall 2 of 41
Sector (Distribution) 1 of 3
Type (Add-on Acquisition) 1 of 21
State (California) 2 of 2
Country (United States) 2 of 40
Year (2004) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-04-05 Interior Specialists

Carlsbad, California, United States

Interior Specialists, Inc. is a provider of outsourced interior design and installation services for homebuilders in the Southwestern U.S. The company sells flooring, countertops, window coverings, cabinets, and other products to homeowners and contracts with installers to install these products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-05-24 Scivex

Oak Harbor, Washington, United States

Scivex, Inc. a designer and manufacturer of precision extruded and custom molded thermoplastic products for life sciences applications.

Sell -
SELLER

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1989
PE ASSETS 70.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


DEAL STATS #
Overall 4 of 52
Sector (Distribution) 1 of 2
Type (Add-on Acquisition) 1 of 10
State (California) 4 of 10
Country (United States) 4 of 49
Year (2004) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-26 CPI

Palo Alto, California, United States

CPI is a designer and manufacturer of electronic components, subsystems and antenna systems for the communications, government, medical and scientific markets. CPI provides technology solutions used in the generation, transmission and reception of signals used in both commercial (broadband internet, in‐flight connectivity) and government (earth observation, satellite communications) applications. CPI was founded in 1995 and is based in Palo Alto, California.

Sell $300M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-09 FTD

Downers Grove, Illinois, United States

FTD provides floral, specialty foods, gift and related products and services to consumers, retail florists, and other retail locations and companies in need of floral and gifting solutions. FTD's portfolio of brands includes proFlowers, proplants, shari’s berries, personal creations, redEnvelope, cherry moon farms, flying flowers, flowers direct, sesame, ink cards, postagram, and Gifts.com. FTD was founded in 1910 and is based in Downers Grove, Illinois.

Sell -
SELLER

Argentum Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 1988
PE ASSETS 400M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argentum Capital Partners is a private equity firm focused on investing in small to mid-sized companies with proven business models and the ability to become market leaders. Prospective transaction situations include growth capital financing, management buyouts, platform acquisitions, and recapitalization. The firm typically takes minority positions, except in the case of management buyouts. Industry sectors of interest include business services, healthcare, and technology. Argentum generally prefers opportunities located in the Eastern US, but will consider companies across the US. Argentum Capital Partners was formed in 1988 and is based in New York City.


DEAL STATS #
Overall 10 of 43
Sector (Distribution) 1 of 2
Type (Add-on Acquisition) 8 of 30
State (California) 2 of 7
Country (United States) 10 of 41
Year (2004) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-04-01 Specialty Healthcare Services

Leesville, Louisiana, United States

Specialty healthcare is a provider of behavioral and physical rehabilitation clinical services within the acute care hospitals. Specialty operates three, free-standing long-term acute care hospitals in California (248 beds) and a long-term acute care hospital within a hospital in Cleveland, Ohio (75 beds), Philadelphia, Pennsylvania (43 beds) and Charleston, South Carolina (59 beds).

Sell $45M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-05-06 ShopLocal

Chicago, Illinois, United States

Cofactor Digital is a digital marketing solutions provider, that connects online and offline shoppers across all channels and devices. Cofactor Digital was established in 1999 and is headquartered in Chicago, Illinois.

Sell $75M