HD Supply, Atlanta, GA, No. 2 on MDM's list of the top 40 industrial distributors, has agreed to sell its HVAC/Plumbing business – with sales of $421 million in 2010 – to Hajoca Corp., Ardmore, PA, No. 3 on MDM's list of the top 10 HVAC/Plumbing/PVF distributors. The transaction is scheduled to close in September.
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"After carefully evaluating the opportunities, we determined that a sale of our Plumbing/HVAC business to Hajoca Corporation was in the best interests of our company as a whole and would be a good strategic fit for both businesses," HD Supply said in a statement to MDM on Friday.
Hajoca, a national distributor, sells plumbing, heating and industrial supplies. It operates under more than 40 names, according to its website.
HD Supply Plumbing/HVAC sells faucets, fixtures, pipe, valves and fittings, pumps and tanks, water heaters and more to customers in the residential, commercial, light industrial, institution and government markets. The segment also has regional kitchen and bath showrooms, according to the HD Supply website.
The sale marks the latest in a string of acquisitions and divestments for the diversified distributor over the past several years.
In its statement, HD Supply said: "We will continue to enhance and reinforce the foundation of the company by investing in continued expansion and strengthening our leadership positions."
In its latest annual report (10K) filed with the SEC, HD Supply said that since 2007 it has focused on extending its presence in key growth sectors and exiting unattractive sectors. The distributor sold its Lumber and Building Materials operations in February 2008 to Probuild Holdings. It expanded in June 2009 with the purchase of assets of ORCO Construction Supply through its White Cap business.
In February 2011, HD Supply announced it would sell SESCO/QUESCO, a division of HD Supply Canada, to Sonepar Canada, an electrical distributor.
"We continue to enhance and reinforce the foundation of the company by investing in continued expansion and strengthening our leadership positions," HD Supply said in a statement. "We’ve launched and accelerated new initiatives that have resulted in substantial revenue-generating opportunities for the company, have helped further maximize operational efficiencies, and have positioned us for sustained growth."
