HD Supply’s $2.9 Billion Sale Of White Cap

Jones Day advised HD Supply, Inc. on the deal, while Debevoise & Plimpton LLP advised Clayton, Dubilier & Rice.

HD Supply Holdings, Inc. (NASDAQ:HDS) 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, a private investment firm, for a purchase price of $2.9 billion in cash. Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. The transaction is expected to close in October 2020, subject to customary regulatory approvals.

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. A more detailed discussion around the use of proceeds will take place on our second-quarter earnings call in early September.

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.

HD Supply is one of the largest industrial distributors in North America. The company provides a broad range of products and value-add services to approximately 500,000 customers with leadership positions in the maintenance, repair and operations and specialty construction sectors.

The Jones Day deal team was led by Ken Boehner (Picture) and Bob Profusek.

The Debevoise team was led by M&A partners Paul Bird and Chris Anthony and includes M&A associates Erik Andren, Mihai Florin Chitulescu, Spencer Gilbert, Bradley Polivka and Alec Smith, finance partner Jeffrey Ross and associates Thomas Heiser, Ryan Rafferty and Temitayo NeneAqua Umoren, tax partners Erin Cleary and Peter Furci and associates Samuel Krawiecz and David Rock, benefits partner Jon Lewis and associate Jeri Brown, intellectual property partner Henry Lebowitz and associate Jose Angel Lamarque, antitrust partner Ted Hassi, counsel Kyra Bromley and associate Leah Martin, capital markets partner Steven J. Slutzky and associates Jonathan Miu and Benjamin Pedersen and environmental counsel Stuart Hammer.

Involved fees earner: Erik Andrén – Debevoise & Plimpton; Christopher Anthony – Debevoise & Plimpton; Paul Bird – Debevoise & Plimpton; Kyra Bromley – Debevoise & Plimpton; Mihai Chitulescu – Debevoise & Plimpton; Erin Cleary – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Spencer Gilbert – Debevoise & Plimpton; Stuart Hammer – Debevoise & Plimpton; Ted Hassi – Debevoise & Plimpton; Thomas Heiser – Debevoise & Plimpton; Samuel Krawiecz – Debevoise & Plimpton; Jose Angel Lamarque III – Debevoise & Plimpton; Henry Lebowitz – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Leah Martin – Debevoise & Plimpton; Jonathan Miu – Debevoise & Plimpton; Temitayo NeneAqua Umoren – Debevoise & Plimpton; Benjamin Pedersen – Debevoise & Plimpton; Ryan Rafferty – Debevoise & Plimpton; David Rock – Debevoise & Plimpton; Jeffrey Ross – Debevoise & Plimpton; Steven Slutzky – Debevoise & Plimpton; Alec Smith – Debevoise & Plimpton; Kenneth Boehner – Jones Day; Bob Profusek – Jones Day;

Law Firms: Debevoise & Plimpton; Jones Day;

Clients: Clayton Dubilier & Rice; HD Supply Holdings Inc;

Author: Ambrogio Visconti