Why Shares of HD Supply Are Up Today
Shares of HD Supply Holdings (NASDAQ: HDS) jumped 11% on Tuesday morning after the company said it has an agreement to sell its construction and industrial business to an affiliate of private equity firm Clayton, Dubilier & Rice (CD&R) in a deal valued at $2.9 billion.
HD Supply is a distributor of industrial and construction supplies. The company at one point was part of Home Depot, but was sold to a consortium of private equity firms including CD&R in 2007.
The PE firms returned HD Supply to the public markets in 2013 and sold off their shares, but CD&R apparently has kept in touch. In August 2017, the firm bought the waterworks division of HD Supply for $2.5 billion, changing its name to Core & Main. And on Tuesday, the firm returned again to buy another chunk of the business.
Source Fool.com
