HD Supply Unflies the Coop
Home Depot is bringing HD Supply back home. From the Wall Street Journal:
Home Depot Inc. HD 0.87% agreed to buy HD Supply Holdings Inc. HDS 24.46% for about $8.7 billion, reuniting with a unit it sold off in 2007 as the home-improvement giant looks to beef up its ability to distribute industrial products amid the pandemic.
HD Supply HDS 24.46% is a wholesale distributor of electrical, plumbing, janitorial and other supplies. It has about 44 distribution centers in the U.S. and Canada. It booked sales of nearly $6 billion in its latest fiscal year, though it recently sold a construction unit that accounted for about half of its business...
HD Supply last year said it planned to separate its facilities-maintenance and its construction and industrial businesses into two publicly traded companies, but it put those plans on hold in March amid chaotic market conditions brought on by the pandemic.
The company in August opted to sell the construction and industrial business, known as White Cap, to Clayton Dubilier for $2.9 billion in cash and focus on the facilities-maintenance business. That deal, which closed last month, made HD Supply more complementary to Home Depot’s current business and its focus on its Pro offering, analysts at Credit Suisse said.