Home Depot completes sale of HD Supply

Industrial Distribution staff -- Industrial Distribution, 8/31/2007 5:47:00 AM

The Home Depot completed the sale of its wholesale distribution business to a trio of private equity firms August 30.

HD Supply was sold to Bain Capital, The Carlyle Group and Clayton, Dubilier & Rice, Inc. for $8.5 billion.

As part of the deal, the Home Depot paid $325 million for a 12.5 percent stake in HD Supply and agreed to cover $1 billion of HD Supply’s debt.

The acquisition includes a portfolio of 11 businesses and HD Supply Canada. The company will retain the HD Supply name.

“We are thrilled to be associated with this group of distinguished private equity firms and we are excited about the tremendous opportunities that lie ahead for our associates, our customers and our new owners,” HD Supply CEO Joe DeAngelo said in a statement announcing the sale. “As an independent company, we can now accelerate our momentum in serving the comprehensive needs of our professional customers with the best products and customer service in the industry.”

Home Depot said it is proceeding with the $22.5 billion share repurchasing plan it announced in conjunction with the sale. Under the so-called “Dutch auction,” set to close August 31, the company will buy back up to 250 million shares of its own stock at prices ranging from $37 to $42 a share.

HD Supply ranked second on INDUSTRIAL DISTRIBUTION’s 2007 Big 50 list of distributors, with 2006 sales of $12.1 billion.

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