Home Depot Supply, which entered the electrical wholesaling industry in a big way with its purchase of Hughes Supply, Orlando, in March 2006, has charged into the fast-growing Phoenix metropolitan market. The Atlanta-based company has agreed to acquire Edson Electric Supply Inc., the largest independently owned electrical distributor, based in the Phoenix metropolitan area, for an undisclosed amount. Edson Electric Supply operates 11 locations throughout Arizona.
The acquisition will extend the reach of Home Depot Supply’s electrical business to key growth markets in the Southwest, Home Depot said. Terms of the deal were not disclosed. The transaction is scheduled to close at the end of August.
Established in 1962, the 172-employee Edson Electric has approximately $137 million in 2005 revenue and is ranked as the 45th largest electrical distributor in the United States, according to Electrical Wholesaling’s 2006 listing of the Top 200 electrical distributors. In the past five years, Edson Electric’s sales increased 174 percent -- from $50 million in 2000 to $137 million in 2005.
“Edson’s solid operational and distribution models provide opportunities for consistent growth and profitability,” Home Depot said in a media statement provided to Electrical Marketing. M. Scott Liles, president of Edson Electric Supply, said he could not comment at press time.
Home Depot Supply’s electrical business currently operates 59 branches in nine states.
Home Depot Supply has acquired several blue-chip distributors to build its position in a range of markets serving business-to-business customers such as homebuilders, professional contractors, municipalities and maintenance professionals. Along with the Hughes Supply purchase, these acquisitions include White Cap Construction Supply, Texas Contractors Supply, Forest Products Supply, Williams Supply, Western Fasteners, Rice Planter Carpets, Brafasco and Apex Supply. The purchase of Hughes Supply more than doubled the size of Home Depot Supply, which today has projected 2006 sales of approximately $12 billion.