Home Depot sells Supply Unit for $10B
Home Depot Inc. is said to have sold its Supply Unit branch for $10B to private equity groups Bain Capital, the Carlyle Group and Clayton Dubilier & Rice, according to a report in The New York Times.
Atlanta-based Home Depot, the nation's largest home-improvement retailer, sold the unit to focus on its more profitable retail stores. The company hired Lehman Brothers earlier this year to evaluate the best practices for the unit.
The HD Supply Unit is a wholesaler of lumber, pipes and concrete to contractors and builders as well as cleaning supplies to hotels.
Former Home Depot CEO Robert Nardelli started the Supply Unit and expanded it through acquisitions, including that of Hugh Supply for $3.2B last year.
Mr. Nardelli resigned earlier this year amid criticism for failing to adequately raise the company's stock price in his six years at the position.
The Supply Unit saw $12 billion in revenue last year, 13 percent of Atlanta-based Home Depot's $91 billion in total revenue.
Current CEO Robert Blake will focus on improving customer satisfaction at the 2,000 Home Depot stores, something he pledged to do upon taking over the position in January.