HDS - Why HD Supply Shot Up 25% Today
Shares of industrial-distributor HD Supply Holdings (NASDAQ: HDS) are up 25% today as of 10:25 a.m. EST, after an announcement that it's being acquired in a deal worth $8 billion.
Last week, home-improvement retailer Lowe's (NYSE: LOW) put out a statement to deny a report that it was in talks to buy HD Supply. Today, rival retailer Home Depot (NYSE: HD) put out its own statement to confirm that it's buying the company that it previously sold to private equity firms in 2007.
Home Depot will buy the supplier of maintenance, repair, and operations (MRO) products for $56 per share. That's 25% higher than HD Supply's closing price of $44.81 on Friday.
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Why HD Supply Shot Up 25% Today