ATLANTA - The Home Depot will acquire its cabinetry refacing services supplier, U.S. Home Systems, Inc., Irving, TX.

Home Depot will pay $12.50 per share in cash, a 38 percent premium over USHS's trading price on the NASDAQ Global Market August 6. For the quarter ended June 30, U.S. Home Systems reported net income rose 21 percent to $1,917,000, on $45.8 million in revenue, up 4.6 percent from the quarter one year ago. Revenue in 2011 was $165 million, up from $146 million in 2010. Recently the cabinet refacing company expanded into Canada.

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The deal was approved unanimously by U.S. Home Systems board, according to a statement released by Home Depot August 7. But threats of litigation to block the deal were quickly voiced by shareholder groups.

The acquisition is expected to close by the end of the calendar year, and is subject to approval by U.S. Home Systems shareholders, and following regulatory approval.

U.S. Home Systems employs 1,000, and manufactures its cabinet refacing materials and bathroom cainetry. It holds an exclusive on providing kitchen and bath refacing products and services to Home Depot. It also sells closet and garage organizational systemsthrough the hardware, lumber and home improvement retail giant.

"By formally bringing USHS into The Home Depot family, we expect to further enhance our customers' home service experience," said Home Depot sernior VP Kevin Hofmann in a statement. Hoffman runs Home Depot's Home Services business.

Bryant Park Capital Securities, Inc. was financial advisor to USHS and rendered a fairness opinion to its board about the transaction. J.P. Morgan Securities is The Home Depot's financial advisor and King & Spalding is its legal advisor.

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