The Home Depot entered into an agreement to acquire White Cap Construction Supply, a distributor of specialty hardware, tools and materials with annual sales of about $500 million which targets large- and medium-sized construction contractors. Home Depot said the acquisition, which was expected to close in early June, is part of its strategy to expand its professional customer market base. The total professional contractor market is estimated to be a $410 billion opportunity.

Founded in 1976, White Cap, based in Costa Mesa, Calif., operates 70 branches throughout the United States and employs 1,720 people. About 60% of White Cap's sales are delivered to the job site; the other 40% is purchased at the branch locations. The company offers more than 65,000 in-stock products including brand-name construction materials, hand tools, fasteners, safety equipment, power tools and equipment, work wear and landscape lighting.

White Cap will become part of The Home Depot Supply division.

“White Cap is the clear leader in this highly fragmented market, and we're pleased that its leadership team will continue to play an integral role in the organization,” Jim Stoddart, president of The Home Depot Supply, said in a statement.