The home and electronics retailer Home Depot has bought the hardware startup, Ace Hardware, for $1.6 billion, the company said Thursday.
The deal will help Home Depot expand its presence in hardware manufacturing, said David Wooten, the vice president of business development and acquisitions at Home Depot.
Home Depot will pay $9.8 billion for Ace Hardware.
The company is currently focused on buying hardware for its stores, Wootensaid in a statement.
The acquisition is expected to close in the second half of 2019, according to a person familiar with the matter.
Ace Hardware will have a team of about 1,000 people and will be headquartered in California.
Ace is an offshoot of the popular maker of custom-made window and door hardware.
Ace has about 1.6 million square feet of production capacity and employs about 600 people.
The maker of door-to-door door hinges and door and window hardware is one of the largest manufacturers of custom door hardware in the world.
Home and other Home Depot retailers have struggled in recent years to sell a range of products, including furniture, appliances, and furniture accessories, according