RTTNews | Aug 11, 2020 08:28AM EDT

08:27 Tuesday, August 11, 2020 (RTTNews.com) - HD Supply Holdings, Inc. (HDS) announced Tuesday that it has entered into a definitive agreement to sell its White Cap business to an affiliate of private equity firm Clayton, Dubilier & Rice for a purchase price of $2.9 billion in cash.

The White Cap business is a leading distributor of specialty concrete and construction products and services in North America serving professional contractors.

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.

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.

Read the original article on RTTNews ( https://www.rttnews.com/3120461/hd-supply-to-divest-white-cap-business-to-clayton-dubilier-rice-for-2-9-bln-in-cash.aspx)

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