Home Depot Mulls Sale of Fastener Firms and Other Distributors
Home Depot Mulls Sale of Fastener Firms and Other Distributors
Jason Sandefur
Months after renaming its wholesale distribution businesses, including fastener companies Crown Bolt, Brampton Fastener and Western Fasteners, Home Depot is evaluating “strategic alternatives” for HD Supply. Possible actions include a “sale, spin or initial public offering of the business,” the home improvement retailer stated.
Home Depot said it wants to focus on its retail business.
“With annual revenues of approximately $12 billion, HD Supply is a healthy, growing and vibrant business,” claimed CEO Frank Blake, “and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value.”
HD Supply has nearly 1,000 locations in the U.S and Canada, employing more than 26,000 workers. The division sells to the infrastructure, construction and maintenance supply industries. Web: hdsupplyinc.com
Home Depot made its initial entry into the fastener industry with 2005 acquisitions of Viejo, CA-based Crown Bolt Inc. and Brampton Fastener Co. Ltd. (Brafasco) of Ontario, Canada. The deals were named in acquisition specialist Richard Hagan’s Top Ten Fastener Acquisitions of 2005. Home Depot acquired Denver-based Western Fasteners in June 2006.
Home Depot has retained Lehman Brothers as its financial advisor, but indicated that the company would not “update its progress or disclose developments” about its actions until its board approved a transaction.
Home Depot has 2,159 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Canada, Mexico and China. Home Depot reported 2005 sales of $81.5 billion and earnings of $5.8 billion. Web: homedepot.com �2007 FastenerNews.com
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