Innovating with wholesale distributors since 2010
Chat with us: TXT or Call 855-662-5426
Moblico Blog banner
Team Moblico

Team Moblico

HD Supply Shifts Gears, Opts to Sell White Cap to CD&R for $2.9B

Facebook
Twitter
LinkedIn

HD Supply Holdings Inc. (NASDAQ:HDS), Atlanta, on Tuesday announced that it has entered into a definitive agreement to sell its Construction & Industrial – White Cap business to an affiliate of private equity firm Clayton, Dubilier & Rice for $2.9 billion.

Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. The transaction is expected to close in October 2020, subject to customary regulatory approvals.

“After a detailed evaluation, we determined that a sale of our White Cap business unit to Clayton, Dubilier & Rice is in the best interests of our HD Supply stockholders,” said Joe DeAngelo, HD Supply chairman, president & CEO. “This transaction will enable the HD Supply leadership team to intensify our focus on Facilities Maintenance, while also returning capital to our HD Supply shareholders.”

HD Supply expects to use the net proceeds from this transaction to return capital to HD Supply shareholders, fund M&A activity and repay debt. A more detailed discussion around the use of proceeds will take place on our second-quarter earnings call in early September.

Once the transaction is complete, John Stegeman, White Cap’s current CEO, and Alan Sollenberger, White Cap’s current President, are expected to continue to lead the Construction and Industrial business, which will include the White Cap, Home Improvement Solutions and Brafasco businesses.

The post HD Supply Shifts Gears, Opts to Sell White Cap to CD&R for $2.9B appeared first on Modern Distribution Management.

More to explorer

conditional statements in ads

Mastering Conditional Statements in Advertising

Mastering Conditional Statements in Advertising The effective use of conditional statements in advertising can significantly amplify the persuasiveness of a campaign. These