In a move that would vault its logistics and shipping operations to a new level, Home Depot is reportedly interested in acquiring Greenwich, CT-based XPO Logistics, according to a report in Recode.
The report said Home Depot has had internal discussions about a bid for XPO, a $9 billion global logistics company, Recode said, citing a source, who further said keeping XPO out of Amazon’s hands would be one possible motivation for the deal.
Amazon of course has been very active on the logistics and transportation front, spending billions over the past couple years on an air freight hub on the Ohio-Kentucky border, cargo jets, a fleet of tractor trailers and other moves.
MCM Musings: If it happens this deal would make sense for Home Depot, the category leader in home improvement that has plowed under thousands of local hardware stores along its growth path. Its shipping and logistics needs are massive, and it is already a customer of XPO, as are many other major retailers, including Amazon. Home Depot has also invested significantly in supply chain technology and omnichannel operations to boost its leadership position. To date at least, home improvement isn’t a category that Amazon has pursued in a major way. It has been making inroads into the automotive parts sector, going after incumbents like AutoZone and Advance Auto Parts, as well as apparel and even prescription drugs.