Lets do this with PBLS!!! Home Depot to Sell Wholesale Supply Unit
Tuesday June 19, 11:34 pm ET
By Giovanna Dell'Orto, Associated Press Writer
Home Depot to Sell Supply Unit for $10.3 Billion, Add $22.5 Billion to Share Repurchase Plan
ATLANTA (AP) -- The Home Depot Inc. said Tuesday it will sell its wholesale distribution business to a group of private equity firms for $10.3 billion over the objection of some shareholders.
The board of the world's largest home improvement store chain approved the sale of Home Depot Supply to Bain Capital Partners, The Carlyle Group, and Clayton, Dubilier & Rice, ridding the company of a unit that former CEO Bob Nardelli saw as a big opportunity for growth.
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The board also authorized a $22.5 billion increase in the company's share repurchase program.
"Today's decision reflects our continued commitment to enhancing shareholder value, through an exclusive focus on our retail business and the return of cash to our shareholders," Chief Executive Frank Blake said in a statement.
Nardelli resigned in January after six years as chief executive amid a firestorm over his hefty pay and the company's lagging stock price. When Blake took over as CEO, he decided to review the supply unit, which serves contractors, homebuilders and other business customers.
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