MRO Magazine

Home Depot’s HD Supply arm sold

Atlanta, Ga -- The Home Depot has entered into an agreement to sell its HD Supply wholesale distribution division t...


Atlanta, Ga — The Home Depot has entered into an agreement to sell its HD Supply wholesale distribution division to private equity firms Bain Capital Partners; The Carlyle Group; and Clayton, Dubilier & Rice for US$10.3 billion. The three buyers are splitting the investment equally.

Subject to certain regulatory requirements and contingencies, the sale of HD Supply is expected to close in the third fiscal quarter of 2007.

At the end of the first quarter of 2007, the company said that it expected consolidated sales including HD Supply to increase by 1%-2% in fiscal 2007 and earnings per share, on a 52 week basis, to decline by 9%. To reflect the impact of the HD Supply discontinued operation, the company plans to update its fiscal 2007 sales and earnings per share growth guidance in July 2007.

The Home Depot is the world’s largest home improvement specialty retailer, with 2,184 retail stores in all 50 U.S. states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, 10 Canadian provinces, Mexico and China. In fiscal 2006, The Home Depot had sales of $90.8 billion and earnings of $5.8 billion.

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Investment in HD Supply is expected to continue. CD&R has previously acquired the $12 billion electrical distributor Rexel, which has made 15 acquisitions since CD&R invested in it, and Wesco International Inc., which has acquired more than $500 million in annualized sales over four years of CD&R investment.