The 2020 Mid-Year Economic Update_long

HD Supply Agrees to Sell Waterworks Business Unit

Company reports first quarter sales up 5.1 percent year-over-year.

HD Supply (NASDAQ: HDS), Atlanta, GA, has entered an agreement to sell its Waterworks business unit, the nation's largest distributor of water, sewer, storm and fire protection products, to Clayton, Dubilier & Rice for a purchase price of $2.5 billion in cash.  The transaction is expected to close in HD Supply's third fiscal quarter of 2017 subject to customary regulatory approvals.

"After a detailed evaluation, we determined that a sale of our Waterworks business unit to Clayton, Dubilier & Rice is in the best interests of our Waterworks associates and HD Supply stockholders," said Joe DeAngelo, HD Supply Chairman, president and CEO. "This significant strategic transaction will further simplify and focus HD Supply on our highest value creation opportunities, accelerate debt reduction, create additional cash to enable next generation growth investments and innovation as well as return cash to HD Supply stockholders."

HD Supply Holdings Inc. also reported sales for the fiscal first quarter ended April 30 of $1.9 billion, an increase of 5.1 percent year-over-year. The company reported a profit for the quarter of $85 million, compared to a loss of $14 million in the first quarter the previous year.

First-quarter sales for facilities maintenance were up 0.7 percent year-over-year to $682 million, Waterworks sales were up 8.6 percent to $657 million and Construction & Industrial sales increased 7 percent to $536 million.

 

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.