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Fairness Opinion Detail

HDS FOOpen source

HD Supply Holdings, Inc. to Home Depot, Inc.

Industrials/Nov 2020/Goldman Sachs

Deal Information

Target
HD Supply Holdings, Inc.
Acquiror
Home Depot, Inc.
Sector
Industrials
Target Type
Public
Acquiror Type
Strategic
Advisors
Goldman Sachs

Transaction Metrics

Enterprise Value
$8.0B
EV / LTM Sales
EV / LTM EBITDA
16.1x
EV / Fwd EBITDA

Advisor Transaction Comparables

Comparable transactions cited by the advisor, excluding the subject transaction.

Advisor: Goldman Sachs

10 comps
Jun 2017HD Supply Holdings, Inc. WaterworksClayton, Dubilier & Rice--10.5x-
Aug 2016USG Corporation (L&W Supply Corp.)ABC Supply Co, Inc.--12.9x-
Jul 2015Cromwell Group (Holdings) LimitedW.W. Grainger, Inc.--11.0x-
Jul 2015Interline Brands, Inc.The Home Depot, Inc.--11.1x-
Jul 2015HD Supply Holdings, Inc. Power SolutionsAnixter International Inc.--10.1x-
Jun 2014The Hillman Companies, Inc.CCMP Capital Advisors, LLC--11.9x-
May 2012Interline Brands, Inc.GS Capital Partners--10.1x-
Apr 2010The Hillman Companies, Inc.Oak Hill Capital Partners--9.8x-
Jun 2007HD Supply, Inc.
10.7x (initial announcement)
Bain Capital Partners, The Carlyle Group Inc.; Clayton, Dubilier & Rice--10.7x-
Jan 2006Hughes Supply, Inc.The Home Depot, Inc.--12.1x-
Mean-11.0x-
Median-10.8x-

DCF Assumptions

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

Goldman Sachs

Open
WACC
6.0% – 7.0%
Terminal method
Exit multiple
Terminal assumption
11.5x – 13.5x (terminal year Adjusted EBITDA ($710 million))
Forecast basis
the Forecasts (HD Supply management)
Forecast period
six months ended January 31, 2021 and fiscal years ending January 31, 2022 through Januar… more

six months ended January 31, 2021 and fiscal years ending January 31, 2022 through January 31, 2025

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