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.
HD Supply CEO: No More Divestments
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 ...
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 ...
Share this article
- Filed In: Subscriber Only, Mergers & Acquisitions, Free, Finance, Companies
About the Author
Lindsay Young
Lindsay Young is the president of 3 Aspens Media, a B2B content strategy and marketing content firm that works with distributors to translate their offline expertise – online. She has more than 20 years of experience leading and producing online and print content for publications and businesses. She leads a team of 12 writers, client success managers, designers, marketing specialists and strategists to produce content that helps companies translate their benefits to key decision-makers. She was previously the editor of Modern Distribution Management.
Recommended Reading
Leave a Reply
Log In
Read the latest articles and see your reports.
Popular Now
MDM Directories
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.