Home Depot To Buy Hughes Supply

Home Depot has agreed to acquire Hughes Supply Inc., rvith more than 500 stores in 40 states.

The $3.19 billion deal-representing an assumption of $285 million in debt and a 2l%a premium over Hughes' stock price-doubles the size of Depot's supply division to $12 billion in annual revenue.

Orlando, Fl.-based Hughes Supply was founded in 1928 as an electrical supplies distributor and has expanded to plumbing, HVAC and other building materials. It now has 9,600 employees, a quarter of them in sales.

In October, Hughes retained financial advisor Lehman Brothers Inc. and legal counsel Weil. Gotshal & Manges LLP to explore a possible sale and other options for the company.

Ex-Hardware Show Partners Headed To Gourt

The American Hardware Manu- heart of AHMA's complaint are facturers Association's lawsuit 'allegations that Reed made secret against its former National arrangements with Freeman, Hardware Show partners, Reed resulting in [AHMA] receiving Elsevier Inc. and Freeman Deco- less revenue than it was due. rating Co., has been allowed to exhibitors paying higher prices for proceed to a jury trial. their exhibiting costs, and atten-

AHMA alleges that Reed and dance at the hardware show declinFreeman, desiring to move the ing."' show to Las Vegas, conspired to undermine its success in Chicago.

"We are certainly very happy with the court's ruling. A jury will

In Chicago, Il., the U.S. District now decide our claims," said Court denied Reed and Freeman's Timothy S. Farrell, AHMA's presmotion for a summary judgment. ident and c.e.o. "We remain very In making the ruling, Senior Judge confident in that process and in our James B. Moran noted that "at the position."

USPL Emerges As Trimax

U.S. Plastic Lumber Corp., Chicago. Il.. has emerged from Chapter | | bankruptcy as a new privately orvned company. Trimax Building Products Inc., adopting the name of its structural HDPE lumber.

Amid opposition by several creditors. the U.S. Bankruptcy Court in Palm Beach. Fl.. approved the Jan. 6 sale to private equity firm American Pacific Financial Corp.. San Bernardino. Ca.. its debtor-in-possession lender. American Pacific paid $2.3 million in cash for USPL. released $3.2 million from its debtorin-possession loan. and assumed $582.0m in liabilities.

After making l6 acquisitions in under three years. USPL filed for bankruptcy protection in July 2004. It divested several operations and product lines. and seemed poised to rebound rvhen several financing deals fell through in late 2005. On Dec. 20. it asked the court for an emergency order to sell the business.

Nathan Kalenich, v.p. of sales, said additional members of management rvill be announced in comins months.