TheNew York Postreported on
its Web site today that the complicated HD Supply distribution business is
affecting Home Depot Inc.’s attempts at selling the wholesale arm of the retail
giant.
While the country’s housing slump remains a factor, how HD
Supply was put together is what’s making it a tough sell.
“It’s a hairball - a roll up of a roll up,” the paper quoted
Colin McGranahan, an analyst for Sanford Bernstein. Home Depot built HD Supply
by acquiring a number of distributors catering to the expansive construction
industry.
All that rolling up is making it difficult for bidders to
determine what exactly they are buying. TheNew York
Postreported that three private investment groups are still
interested, but a fourth has dropped out of the bidding.
Home Depot announced last February that they would
consider unloading HD Supply. Analysts have valued the business at more than
$10 billion.
May 22, 2007 - 'Hairball' Roll Up Affects HD Supply Sale
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