HD Supply (NASDAQ:HDS) is a great reminder of how private equity does not always get it right. Back in 2007, Home Depot (NYSE:HD) sold its supply business (HD Supply) to a consortium of private equity firms at a price of $8.5B. Home Depot retained a 12.5% ownership interest in the business, the portion of which it carried on its balance sheet being subsequently written down to a zero balance as the housing crash ravaged on. In a sign of the times, or possibly a sign of looking for a way to cut their losses, the private equity firms decided the timing was right to bring HD Supply to market with an IPO that was just recently...
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