Home improvement retailer The Home Depot said today it may sell off its HD Supply business, a wholesale distribution business with nearly 1,000 locations in the U.S. and Canada. HD Supply has leading positions in the infrastructure, construction and maintenance supply industries. The Home Depot (Atlanta, Georgia, U.S.) said that it and its board decided to look at strategic alternatives for the business such as a possible sale, spin or initial public offering. The Home Depot retained Lehman Brothers as its financial advisor to assist in this process and said that it does not expect to update its progress or disclose developments about the HD Supply alternatives unless the board has approved a definitive transaction.
"We are undertaking this action today because of our desire to increase our focus on our retail business," said Frank Blake, chairman and CEO of The Home Depot. "With annual revenues of approximately U.S. $12 billion, HD Supply is a healthy, growing and vibrant business, and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value."
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