Home Depot adds another tool to its pro belt
The Home Depot announced that it entered into a definitive agreement to acquire International Designs Group (IDG), a platform company that owns and operates Construction Resources and other design-oriented subsidiaries.
Construction Resources distributes design-oriented surfaces, appliances, and architectural specialty products for professional contractors focused on renovation, remodeling, residential home building, and multi-family.
In announcing the acquisition, Home Depot said pro spending represents a $475 billion market. The Atlanta-based home improvement retail giant also said it is focused on capturing a larger share by building capabilities to serve pros of all sizes, including pros working on smaller jobs to larger, more complex projects.
The acquisition combines Construction Resources' expertise in complex, cross-category professional projects with retailer's scale, product authority, and distribution expertise, Home Depit said.
With showrooms across the East Coast and Southeast, Construction Resources allows The Home Depot to expand the capabilities it offers pro customers, many of whom rely on showrooms as part of their consultative approach to complex renovation and remodel jobs.
"Almost all pros interact with The Home Depot, but their level of engagement varies based on the complexity of their projects,” said Ted Decker, chair, president and CEO of The Home Depot. “We're building capabilities to ensure we can serve all pros across all their project needs – whether we're the last stop on the way to the jobsite, or their first consideration when building a project design.”
"Construction Resources helps us accelerate our pro-growth opportunity with a successful showroom model, an exceptional sales force, and proven, long-term relationships with renovator, remodeler, and residential new-construction pros,” Decker added. “We look forward to working with Mitch Hires and the outstanding leadership team at Construction Resources and are excited for the opportunity ahead."
Home Depot is acquiring IDG from Mill Point Capital LLC, a private equity firm focused on control-oriented investments in the business services, industrials, and IT services sectors. The acquisition is expected to close by the end of 2023.
Financial terms of the deal were not disclosed.
"We're thrilled to join The Home Depot team, because their customer- and associate-focused culture aligns so well with Construction Resources' commitment to excellence in serving our customers," said Mitch Hires, CEO of Construction Resources. "The Home Depot's scale, operational expertise and product innovation is unmatched in our industry, and I'm confident the combination of our capabilities will bring tremendous value to the Pros and homeowners who rely on us every day."
Home Depot noted that it is building a unique, interconnected ecosystem to help pros build their businesses. The company already has comprehensive offerings and capabilities for pros, including its ProXtra loyalty program, job-lot quantities of the right assortment of brands, and digital tools among other service offerings.
