HD Supply taps Goldman on JANA approach, sources say

20 December, 2016 - 8:29 pm UTC

by Harry Brumpton@HarryBrumpton, David Carnevali@davidcarnevali and Claudia Montoto@ClaudiaMontoto

20 December 2016 – HD Supply [NASDAQ:DHS] is working with Goldman Sachs as the distributor faces pressure from activist investor JANA Partners, a source briefed on the matter and a sector advisor said.

The Atlanta-based industrial construction supplies company is not running a formal sale process but has been gauging potential suitor interest, said the source. Goldman is also providing defensive advice to HD Supply, the source and sector advisor said, and it is possible no deal will be reached.

Interest on the part of strategic buyers for the whole company seems tepid, said the source. With a USD 12bn-plus enterprise value, HD Supply would be a massive bet for financial sponsors.

HD Supply did not respond to requests for comment. Goldman and JANA declined to comment.

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