HD Supply to sell Whitecap business to private-equity firm Clayton, Dubilier & Rice for $2.9 billion in cash

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HD Supply Holdings Inc. shares jumped 5.3% in premarket trade Tuesday, after the company said it has agreed to sell its construction and industrial business known as Whitecap to a unit of private-equity firm Clayton, Dubilier & Rice for $2.9 billion in cash. Atlanta, Ga.-based HD Supply expects the deal to close in October. The company will use the proceeds of the deal to return capital to its shareholders, to fund M&A activity and to repay debt. “This transaction will enable the HD Supply leadership team to intensify our focus on Facilities Maintenance, while also returning capital to our HD Supply shareholder,” Chief Executive Joe DeAngelo said in a statement. Shares have fallen 4.9% in the year to date, while the S&P 500 has gained 4%.
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