HD Supply Holdings, Inc. reported third quarter net sales rose 0.3% to of $827.5 compared to net sales of $825.2 in the third quarter a year ago.
The Atlanta-based distributor, with a strong presence in the maintenance, repair and operations market, also posted a net income of $1.61 billion compared to a net income of $131.9 million for the same period a year ago.
HD Supply said the jump in profits was primarily due to the sale of its White Cap Construction & Industrial business resulting in cash proceeds of approximately $2.8 billion
During the quarter an even bigger deal was announced as The Home Depot reported that it was repurchasing HD Supply in an $8 billion deal. The acquisition is expected to close in the fourth quarter.
HD Supply operates about 44 distribution centers, across 25 states and two Canadian provinces.
The Bottom Line: As HD Supply is set to be reacquired by The Home Depot, profits soar to $1.61 billion following the sale of its White Cap business.
What the CEO said: “I am very proud of the team as their focused execution continued to deliver improved results, in the face of turbulent end markets and organizational change,” stated Joe DeAngelo, chairman and CEO of HD Supply. “It is a testament to their dedication to our customers and their commitment to safely delivering best-in-class service.”
Company info: The full third quarter 2020 financial report from HD Supply is available here.