Home Depot Finally Sells Commercial Business Supply Division After $2 Billion Price Cut

Home Depot has finally rid itself of the commercial business supply division that was often blamed for the chain’s miserable customer service and lagging stock price. The commercial supply division was accused of stealing resources from the stores, and was the pet project of disgraced former CEO “Big Bob” Nardelli. Home Depot had to chop $2 billion off the asking price, but they got the deal done.

“Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale deliver shareholder value today and in the future as we will share in HD Supply’s upside potential. We are now focused on our retail business,” said Frank Blake, chairman & CEO of The Home Depot in a statement.

The Home Depot Agrees To Revised Terms of Sale of HD Supply (Press Release) [Home Depot]

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  1. timmus says:

    I guess I’ve got to ask: what is the Commercial Business Supply Division? Is that the contractor side of the store?

  2. kelbear says:

    Hughes Supply, Sunbelt Supply.

    The Home Depot Supply division owned a few sub-companies for commercial goods, that don’t really offer anything for consumers. They sell industrial goods(I work in capital equipment purchasing, making factories in Texas).

    They were decent vendors for us, and supplied a fair amount of valves for our site in Point Comfort.

  3. Trai_Dep says:

    I’ll bet Chrystler would consider itself lucky if it were able to sell itself for only $2B less than when Nardelli took charge after he’s done with them…

  4. Sudonum says:

    @timmus:
    They also owned a company called “Maintenance Warehouse” that they renamed “Home Depot Supply” It sold maintenance and repair items for hotels, apartments and office buildings.

    Hughes Supply is a wholesale plumbing supplier. Sunbelt Supply sells industrial valves.

  5. Greasy Thumb Guzik says:

    @Sudonum:
    Maintenance Warehouse sold everything.
    Tools, appliance parts, plumbing supplies, electrical supplies, two-way radios, etc.
    They were a mini-Grainger.
    There was free shipping if your order was over $50.

    Then Nardelli came!

  6. Bobg says:

    I drive past a Home Despot to get to the Lowe’s store that I use. Are you listening Chrysler?