In an interview last week with MDM, HD Supply CEO Joe DeAngelo spoke on his vision for HD Supply, post-Home Depot.
Speaking with DeAngelo, I came away with the feeling that HD Supply was back (if it was ever really gone) and ready to move forward as a more focused organization after the turmoil of last year: "We woke up in the first part of '07 and found out we're for sale mid-February, and so we go with the flow with that and then find out when we're just about sold that there is a liquidity crisis, and the deal is going back and forth. And then on top of that is a major residential downturn to contend with," DeAngelo said.
Moving forward, DeAngelo told MDM that the company is finished selling off pieces of the business – "I'll be very clear: We have no plans to divest any other piece." HD Supply sold its lumber and building materials business to ProBuild Holdings, Denver, CO. DeAngelo on that move: "The business would have required a massive investment to become a No. 1 or 2 (in the market) and would have been a cash drain for the other businesses. We (divested the business) very early to a business we believe will allow our associates to have long-term success." The HVAC unit the distributor was going to sell to Watsco will stay put with HD Supply.
Most importantly, HD Supply, with between $10 billion and $11 billion in sales, will continue to be a consolidator in the industry, with plans to go back on the acquisition trail; currently the company is focused on bolt-ons in its specialty construction (anchored by White Cap), facilities maintenance, utilities and waterworks businesses. Its most recent acquisition was announced just this week, when HD Supply Waterworks bought D&M Fabrication.
The full interview with DeAngelo on HD Supply, post-HD, will be published April 10 at www.mdm.com and available to subscribers of MDM's twice-monthly newsletter.
