White Cap Splits from HD Supply, Combines with Construction Supply Group

Combined the two create a $4 Billion distributor of concrete accessories and specialty construction products. The transaction will enhance capabilities to serve professional contractors with broader product and service offerings and expanded reach.

White Cap Supply Holdings, LLC ("White Cap") and Construction Supply Group ("CSG") announce today the successful separation of White Cap from HD Supply and its combination with CSG. The combined transaction, valued at approximately $4 billion and including an investment by Clayton, Dubilier & Rice ("CD&R") funds, creates one of the leading North American distributors of a diverse mix of concrete accessories and specialty construction and safety products by revenues with more than $4 billion annually.

Following the transaction, CD&R funds hold a 65 percent ownership interest in the combined company, and the prior shareholders of CSG, led by The Sterling Group, hold a 35 percent interest.

CSG and White Cap have highly complementary product offerings and geographic footprints, aligned cultures and strong talent focused on providing exceptional customer service to professional contractors. John Stegeman, CEO of White Cap, and Alan Sollenberger, President of White Cap, will lead the combined business.

"Both White Cap and CSG share the same vision of continuous growth with the goal to relentlessly improve customer service," said John Stegeman. "By joining together, our platform allows expansion of our product and service offerings across more than 400 locations in 46 U.S. States and 8 Canadian Provinces. Our goal is to provide even greater value for our customers and enhance our ability to serve with excellence. This is an incredibly exciting time for our associates, customers, and suppliers."

The combined strength of White Cap and CSG will include:

  • An outside sales force of over 850 associates with significant industry experience
  • More than 1,000 inside and counter sales associates to deliver on our promise of two-hour ready will call at our locations
  • Nearly 2,000 delivery vehicles to enable our same day or next day service to job sites
  • A comprehensive offering of 400,000+ products from more than 4,500 suppliers

"Both businesses have incredible histories of exceptional customer service," said Alan Sollenberger. "As we join together, we will continue to build on our vast experiences and stronger future by investing in focused local growth initiatives with the support of our national platform."

"Our goal with this transformational combination is to bring to life the many benefits of our combination for our customers," said John Stegeman.

Latest