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An Attractive Business

March 28, 2013

Distributing industrial products has proven to be a very lucrative business for HD Supply. It has now become one of the largest industrial distribution companies in North America. The company boasts of more than 80 years of experience and has a wide range portfolio of industry leading businesses. The scope of HD’s business is impressive. It offers a comprehensive line of products and services to around 440,000 professional customers in infrastructure, maintenance, repair and improvement, and specialty construction markets.

Its industry-leading businesses include HD Supply White Cap, HD Supply Power Solutions, HD Supply Facilities Maintenance, and HD Supply Waterworks.  HD Supply has a staggering offering of around one million SKU of name-brand and proprietary products at attractive prices. The company has 14,000 associates that offer custom-driven and localized services like jobsite delivery, will call or direct-ship options, diversified logistics, and innovative approaches that adds to customer success.  HD Supply’s coverage is very impressive with around 630 locations in 45 states and nine Canadian provinces.

It is certainly an attractive business. HD Supply was actually part of Home Depot Inc until it was bought out for $8.5 billion by buyout firms Bain Capital, Carlyle Group, and Clayton, Dubilier & Rice in 2007. Now these veteran firms will not buy this business unless they see profit down the line. HD Supply just like most of the economy suffered during the aftermath of the financial crisis but has since bounced back.

Business has been at a level that HD Supply is now attractive enough for an IPO which the three buyout firms are in the process of executing.

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