ATLANTA - Home Depot has announced that the company and its board of directors have decided to evaluate strategic alternatives for HD Supply, its wholesale business, including a possible sale, spin off, or initial public offering of the business.
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
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
HD Supply is the wholesale distribution business of Home Depot,
with nearly 1,000 locations nationwide and in Canada. It employs more than