HD Supply is one of the largest industrial distributors in North America. Once the transaction is complete, John Stegeman, White Cap’s current CEO, and Alan Sollenberger, White Cap’s current President, are expected to continue to lead the Construction and Industrial business, which will include the White Cap, Home Improvement Solutions and Brafasco businesses. A more detailed discussion around the use of proceeds will take place on our second-quarter earnings call in early September. HD Supply expects to use the net proceeds from this transaction to return capital to HD Supply shareholders, fund M&A activity and repay debt. “This transaction will enable the HD Supply leadership team to intensify our focus on Facilities Maintenance, while also returning capital to our HD Supply shareholders.” “After a detailed evaluation, we determined that a sale of our White Cap business unit to Clayton, Dubilier & Rice is in the best interests of our HD Supply stockholders,” said Joe DeAngelo, HD Supply Chairman, President & CEO. The transaction is expected to close in October 2020, subject to customary regulatory approvals. Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. announced that it has entered into a definitive agreement to sell its Construction & Industrial–White Cap business (also known as “White Cap”), a leading distributor of specialty concrete and construction products and services in North America serving professional contractors, to an affiliate of Clayton, Dubilier & Rice for a purchase price of $2.9 billion in cash. "Our goal with this transformational combination is to bring to life the many benefits of our combination for our customers," said John Stegeman.HD Supply Holdings, Inc. "As we join together, we will continue to build on our vast experiences and stronger future by investing in focused local growth initiatives with the support of our national platform." "Both businesses have incredible histories of exceptional customer service," said Alan Sollenberger. A comprehensive offering of 400,000+ products from more than 4,500 suppliers.Nearly 2,000 delivery vehicles to enable our same day or next day service to job sites.More than 1,000 inside and counter sales associates to deliver on our promise of two-hour ready will call at our locations.An outside sales force of over 850 associates with significant industry experience.The combined strength of White Cap and CSG will include: This is an incredibly exciting time for our associates, customers, and suppliers." Our goal is to provide even greater value for our customers and enhance our ability to serve with excellence. "By joining together, our platform allows expansion of our product and service offerings across more than 400 locations in 46 U.S. "Both White Cap and CSG share the same vision of continuous growth with the goal to relentlessly improve customer service," said John Stegeman. John Stegeman, CEO of White Cap, and Alan Sollenberger, President of White Cap, will lead the combined business. The combined transaction, valued at approximately $4 billion and including an investment by Clayton, Dubilier & Rice ("CD&R") funds, creates one of the leading North American distributors of a diverse mix of concrete accessories and specialty construction and safety products by revenues with more than $4 billion annually.įollowing the transaction, CD&R funds hold a 65 percent ownership interest in the combined company, and the prior shareholders of CSG, led by The Sterling Group, hold a 35 percent interest.ĬSG and White Cap have highly complementary product offerings and geographic footprints, aligned cultures and strong talent focused on providing exceptional customer service to professional contractors. White Cap Supply Holdings, LLC ("White Cap") and Construction Supply Group ("CSG") announce today the successful separation of White Cap from HD Supply and its combination with CSG.
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