HD Supply's 'Transformative Actions' Include New Role for DeAngelo - Modern Distribution Management

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HD Supply’s ‘Transformative Actions’ Include New Role for DeAngelo

CEO takes reins of Facilities Maintenance as company doubles down on division.

HD Supply attributed second-quarter sales and profit growth to a host of "transformative actions," including the $825 million sale of its Power Solutions division to Anixter International Inc. But the Atlanta, GA-based distributor also made a strategic leadership change by appointing CEO Joe DeAngelo to lead its largest remaining business, Facilities Maintenance, following the departure of its previous president and CEO, Anesa Chaibi.

During the earnings call with analysts, DeAngelo, who will remain CEO for the entire organization, said there were no inferences to make about the move or the company's changing position in the MRO space, despite recent consolidation. Instead, the company is now "doubling down" on Facilities Maintenance.

"There's been some new entrants with the Home Depot acquisition Interline Brands, but other than that the playing field looks about the same," he said. "It's a playing field that we know very well."

DeAngelo takes over Facilities Maintenance as its business profile gets a boost following the divestiture of Power Solutions. Facilities Maintenance now represents 63 percent of the company's business, up from 57 percent, and the division's sales were up 6.9 percent year-over-year in the second quarter to $733 million.

As HD Supply gets leaner, using the proceeds of the Power Solutions sale to reduce debt, the company reiterated its focus on moving its three businesses –Waterworks and Construction & Industrial, as well as Facilities Maintenance – to distant No. 1 positions.

It remains focused on "five growth plays" – selling more to existing customers; introducing new products and services; expanding the channels to reach customers; acquiring new customers; and entering new geographies. HD Supply also refinanced a term loan and realigned senior leadership in Waterworks, moves it believes will deliver sales and profit growth.

"Our recent transformative actions all align with our strategy," DeAngelo said.

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