RTTNews | Aug 11, 2020 10:08AM EDT

10:08 Tuesday, August 11, 2020 (RTTNews.com) - Shares of HD Supply Holdings, Inc. (HDS) gained 12% on Tuesday morning after the company announced that it will sell its Whitecap business to private-equity firm Clayton, Dubilier & Rice for $2.9 billion in cash.

HDS is currently trading at $42.79, up $4.55 or 11.91%, on the Nasdaq.

HD Supply Holdings Inc. (HDS) will sell its construction and industrial business, known as White Cap, to Clayton, Dubilier & Rice.

The transaction is expected to close in October 2020, subject to customary regulatory approvals.

HD Supply expects to use the proceeds to return capital to HD Supply shareholders, fund M&A activity and repay debt.

Meanwhile, Clayton, Dubilier & Rice will combine the Whitecap business with the Construction Supply Group (CSG). Upon the closing of the transactions, CD&R funds will hold a 65% ownership interest in the combined company, and the current shareholders of CSG, led by The Sterling Group, will hold a 35% interest.

Read the original article on RTTNews ( https://www.rttnews.com/3120510/stock-alert-hd-supply-holdings-to-sell-whitecap-biz-for-2-9-bln-driving-stock-up-12.aspx)

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