UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement pursuant to Section 14(a) of the Securities
Exchange Act of 1934
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Hughes Supply, Inc.
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THIS FILING CONSISTS A MEMORANDUM SENT TO EMPLOYEES REGARDING THE PROPOSED
MERGER.
TO: All Hughes Supply Employees
FROM: Tom Morgan, President and CEO
DATE: January 20, 2006
RE: Employee Update
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In the 10 days since we announced our plan to combine our organization with The
Home Depot(R), there has been a great deal of excitement and speculation from
employees, investors, media and the community at large. We promised to deliver
information to you as frequently and comprehensively as we could.
TIMELY AND ACCURATE EMPLOYEE COMMUNICATIONS CONTINUES TO BE OF CRITICAL
IMPORTANCE. Last week, all Hughes managers were asked to talk with their
respective teams to share the information we had to date, and answer questions
as best we can at this stage. I cannot emphasize enough how important it is that
every single employee in our organization is informed and connected. Due to the
fact that there are a great deal of decisions to be made, and our adherence to
legal and regulatory guidelines, we may not have all of the answers you are
looking for right now. We will, however, continue sharing information as soon as
it becomes available, and ask that you communicate any concerns you may have to
your manager.
THE INTEGRATION PROCESS IS MOVING FORWARD AT AN AMBITIOUS PACE. Days after the
initial announcement, a dedicated Integration Management Office was created and
a team of integration leaders was appointed to plan and coordinate the
combination of our businesses. Our Hughes Integration team met for the first
time this morning to begin developing a strategy to execute the integration of
our businesses and corporate functions. These team leaders will need the support
of all of our people, and may be calling on your expertise in the near future. I
urge you to assist their efforts to the best of your abilities.
THE HOME DEPOT HAS BEEN EXTREMELY POSITIVE IN COMMUNICATING OUR MERGER AS A KEY
COMPONENT FOR DRIVING GROWTH AND OPPORTUNITY FOR OUR BUSINESSES, OUR EMPLOYEES
AND OUR CUSTOMERS. Yesterday, The Home Depot hosted its annual investor meeting,
discussed the addition of Hughes Supply as an exciting component of their
business strategy and cited our addition as a critical part of their aggressive
growth plans. In a press release issued yesterday, Chairman, President and CEO
Bob Nardelli said:
"We are poised for dramatic growth over the next five years across our business.
Our planned acquisition of Hughes Supply is a great example of how we are
rapidly replicating in the professional market the same type of transformation
that we brought to the home improvement retail market."
During the investor conference, The Home Depot executive leadership team said
that together, "We will be well-positioned in a huge, fragmented market and will
have an unparalleled national footprint...900+ locations. In every business
there is plenty of room to grow and accelerate into new geographies and new
business portfolios while offering a compelling customer experience."
Prior to the Hughes Supply acquisition announcement, their sales growth was
projected at 9-12%. Assuming the acquisition closes near the end of the first
quarter or at the beginning of the second quarter, they project 14-17% sales
growth in 2006.
If you are interested in learning more, I encourage you to visit The Home Depot
web site, listen to yesterday's investor conference and read their recent press
releases. Click on "Events and Presentations" and "News Releases."
http://ir.homedepot.com/index.cfm
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This positive communication is occurring with the media as well. For example,
Joe DeAngelo, Executive Vice President of Home Depot Supply, spoke to
MarketWatch yesterday, describing the acquisition as "a great marriage that
gives Home Depot new platforms, diversification and access to a market that's
twice the size of the do-it-yourself consumer business."
Listen to the complete interview via the following link:
http://www.marketwatch.com/tvradio/playerfull.asp?siteid=yhoo&dist=yhooBB&guid=%
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I hope you share the excitement about the opportunities ahead. I will
communicate more information to you as soon as it becomes available.
ACTION: Please share this information with all Hughes Supply employees.
In connection with the proposed merger, Hughes Supply will file a proxy
statement with the Securities and Exchange Commission. INVESTORS AND SECURITY
HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE,
BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders
may obtain a free copy of the proxy statement (when available) and other
documents filed by Hughes Supply at the Securities and Exchange Commission's Web
site at http://www.sec.gov. The proxy statement and such other documents may
also be obtained for free from Hughes Supply by directing such request to Hughes
Supply, Attention: Investor Relations, telephone: (407) 822-2139.
Hughes Supply and its directors, executive officers and other members of its
management and employees may be deemed to be participants in the solicitation of
proxies from its stockholders in connection with the proposed merger.
Information concerning the interests of Hughes Supply's participants in the
solicitation is set forth in Hughes Supply's proxy statement dated April 18,
2005 relating to its 2005 Annual Meeting of Stockholders, previously filed with
the Securities and Exchange Commission, and in the proxy statement relating to
the merger when it becomes available.