HD Supply to sell its Industrial PVF business
HD Supplyhas agreed to sell its industrial pipes, valves and fittings (PVF) business to Shale-Inland Holdings, an affiliate of investment firms TowerBrook Capital Partners and The Stephens Group. The purchase is expected to close in March 2012. The purchase price was not disclosed.
“After careful evaluation, we determined that divesting our Industrial PVF business is in the best interests of our company as we seek to continue strengthening our industry-leading businesses,” saidJoe DeAngelo, CEO of HD Supply. “The Industrial PVF team, with the expertise of its many seasoned industry veterans, has done a tremendous job, and they can be proud that this new chapter is the result of the momentum they have built and the success of their initiatives.”
Once the sale is complete, the proceeds from the transaction will provide HD Supply with additional financial and strategic flexibility to further strengthen its portfolio, according to the announcement. As of Jan. 9, 2012, the Atlanta-based distributor had approximately $1.2 billion in available funds. This liquidity “provides ample capital to fund growth and meet its financial obligations,” the company said.
Last September, the company sold its plumbing/HVAC business to Hajoca Corp.
Source: HD Supply