The decision to sell off the industrial PVF division of HD Supply was an easy one, according to CEO Joe DeAngelo. “It was a lot more speculative a business than we wanted to be in,” he said in an interview with MDM. Because of its “tremendous” working capital requirements and volatile ties to commodity markets, the division also had very different operating characteristics than the remaining divisions of HD Supply.
On the other side of the deal, where HD Supply saw a disconnect with its other businesses, Shale-Inland Holdings, a metals service center, saw a great complement. The division provides an inroad to the energy markets, a segment identified by Shale-Inland’s CEO Craig T. Bouchard as critical. “This has really been a vision of Shale-Inland to go in this direction,” Bouchard says. “We want to be the best metals provider into the energy segment.”tED