Feb. 19, 2007: Home Depot May Sell or Spin Off HD Supply
Home Depot stated there can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing. The company has retained Lehman Brothers as its financial advisor to assist in this process. The company said that it does not expect to update its progress or disclose developments with respect to the exploration of HD Supply strategic alternatives unless the board of directors has approved a definitive transaction.
The announcement is "a continuation of the strategic review we did in November," said Frank Blake, chairman and CEO of Home Depot. He said the company is taking this action "because of our desire to increase our focus on our retail business. With annual revenues of approximately $12 billion, HD Supply is a healthy, growing, and vibrant business, and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value."
HD Supply is the wholesale distribution business of Home Depot, with nearly 1,000 locations nationwide and in Canada. It employs more than 26,000 people.
Publication date: 02/19/2007