Home Depot agrees to deal with U.S. Home Systems

A deal has been reached for The Home Depot to acquire U.S. Home Systems in a deal that was unanimously approved by the USHS board of directors, which could deliver cost savings to the home goods stores.

USHS is headquartered in Irving, Texas, and is an exclusive provider of kitchen and bath refacing products and services to The Home Depot. In the deal, The Home Depot will acquire USHS for $12.50 per share in cash, which represents close to a 38 percent premium over USHS's closing price on the NASDAQ Global Market on August 6.

"The USHS board of directors conducted a thorough review of the company's alternatives to enhance stockholder value, and we are pleased that this transaction appropriately recognizes the value of USHS' relationships and solutions, while providing our stockholders with an attractive cash premium for their investment," said Murray Gross, president, CEO chairman, USHS.

The acquisition is expected to be closed by the end of the calendar year and is still subject to approval by USHS stockholders.

The Home Depot is the world's largest improvement specialty retailer and reported retail sales of $70.4 billion in earnings in 2011.