Home Depot to buy Jacksonville-based Interline Brands

(Ferre Dollar/CNN)

JACKSONVILLE, Fla. – Interline Brands Inc., a Jacksonville-based distributor of maintenance, repair and operation products announced Wednesday The Home Depot, the world's largest home improvement retailer, has agreed to buy it for $1.6 billion in cash.

The acquisition is expected to be completed in The Home Depot's fiscal third quarter, which ends on Nov. 1  and is subject to applicable regulatory approval and customary closing conditions, including the repayment of Interline's investors.

"We believe this transaction will create many exciting opportunities for our customers and associates as we enter the next exciting stage in our company's history," said Michael Grebe, Interline's chairman and CEO. "Through this partnership, we believe we can bring a truly interconnected solution to customers, providing them with a single source for all of their maintenance, repair and operation needs – whenever and wherever they need it. Ken Sweder and I truly look forward to being a part of The Home Depot team."

Goldman Sachs and Barclays are acting as financial advisors and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor to Interline Brands in connection with the transaction.

"In recent years, Interline has achieved impressive financial results and accomplished a number of key business enhancements," said Brad Gross, managing director of Goldman Sachs,