About HD Supply Holdings

HD Supply Holdings, Inc., together with its subsidiaries, operates as an industrial distributor in North America. Through approximately 270 branches and 44 distribution centers, in the United States and Canada, the company serves these markets with an integrated go-to-market strategy. The company delivers localized, customer-tailored products, services and expertise. The company serves approximately 500,000 customers, which include contractors, maintenance professionals, home builders, industrial businesses, and government entities. Its range of product lines and services include approximately 600,000 stock-keeping units of name-brand and proprietary-brand products, as well as value-add services supporting the life-cycle of a project from construction to maintenance, repair and operations (MRO). The company’s value-add services include customer training and certification, material and product fabrication, kitting, jobsite delivery and installation and will-call pickup options. The company reaches its customers through various sales channels, including professional outside and inside sales forces, call centers and direct marketing programs utilizing market-specific product catalogs, and business unit Websites and digital tools. Its distribution network allows the company to provide on-time delivery and customer pickup throughout the U.S. and Canada. Segments The company operates through Facilities Maintenance and Construction & Industrial segments. Facilities Maintenance This segment distributes MRO products, provides value-add services and fabricates custom products. The markets that Facilities Maintenance serves include multifamily, hospitality, healthcare and institutional facilities. Products include electrical and lighting items, plumbing supplies, HVAC products, appliances, janitorial supplies, hardware, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance and water and wastewater treatment products. This segment operates a distribution center-based model that sells its products primarily through a professional sales force, e-commerce and print catalogs. Construction & Industrial This segment distributes concrete accessories and chemicals, specialized hardware, tools, engineered materials and safety products to non-residential and residential contractors. Products include tilt-up brace systems, forming and shoring systems, hand and power tools, cutting tools, rebar, ladders, safety and fall arrest equipment, specialty screws and fasteners, sealants and adhesives, drainage pipe, geo-synthetics, erosion and sediment control equipment and other engineered materials used across all types of non-residential and residential construction. This segment also includes Home Improvement Solutions, which offers light remodeling and construction supplies, kitchen and bath cabinets, windows, plumbing materials, electrical equipment and other products, primarily to small remodeling contractors and trade professionals. Market Sectors The company offers a range of products and services to the MRO and Specialty Construction market sectors in the U.S. and Canada. MRO: In the MRO market sector, the company’s Facilities Maintenance business serves customers across multiple industries by primarily delivering supplies and services needed to maintain and upgrade multifamily, hospitality, healthcare and institutional facilities. Facilities Maintenance is a distribution center-based model. Specialty Construction: In the Specialty Construction market sector, the company’s Construction & Industrial and Home Improvement Solutions businesses serve professional contractors and trades by meeting their distinct and customized supply needs in non-residential, residential and industrial applications. Construction & Industrial serves this sector through the national presence of its regionally organized branch distribution network, as well as branches in six Canadian provinces, while Home Improvement Solutions operates through retail outlets in California primarily serving cash and carry customers. Strategy The company’s strategy includes entering new markets and product lines, streamlining and upgrading its process and technology capabilities, acquiring new capabilities and identifying and acquiring acquisition targets that complement its existing businesses. The key elements of the company’s strategy are to sell more to existing customers (share of wallet); introduce new products and services; expand the channels to reach its customers (Internet, catalog, and mobility); acquire new customers; and enter new geographies (open new locations). Seasonality In a typical year, the company’s operating results are impacted by seasonality. Historically, sales of its products have been higher in the second and third quarters of each fiscal year (year ended February 2020) due to favorable weather and longer daylight conditions during these periods. Intellectual property The company, together with its subsidiaries, owns approximately 145 trademarks registered worldwide. The company’s trademarks include HD Supply, USABluebook, Seasons, Brigade, Maintenance Warehouse, White Cap, Cotton Bay, Fido, Champion, Shield Security, Brafasco, and AH Harris. Regulation The U.S. Department of Transportation (DOT) regulates the company’s operations in domestic interstate commerce. The company is subject to safety requirements governing interstate operations prescribed by the DOT. Competition The company faces competition from various national competitors, including Fastenal, Grainger, MSC Industrial, Watsco, Home Depot Pro (a division of The Home Depot, Inc.), Maintenance Supply Headquarters (a division of Lowe’s Companies, Inc.) and Ferguson. History HD Supply Holdings, Inc. was founded in 2007. The company was incorporated in 2007.