HD Supply White Cap acquires Orco Construction Supply

Deal expands HD Supply's presence in California, Arizona and Nevada
Victoria Fraza Kickham -- Industrial Distribution, 5/20/2009 2:06:18 PM

HD Supply White Cap said Wednesday it purchased the assets of Livermore, Calif.-based Orco Construction Supply. The deal expands HD Supply's coverage in California, Arizona and Nevada.

Orco, a construction supplies distributor with 11 distribution centers and two rebar facilities, filed for Chapter 11 bankruptcy protection earlier this year. In April, the distributor announced plans to sell to ACSP LLC, an entity run by White Cap founder and former executive Greg Grosch. White Cap was sold to The Home Depot in 2004 and became part of its HD Supply business, which was spun off in 2007.

The deal was contingent upon ACSP obtaining final financing and subject to an overbid process as part of the bankruptcy proceedings. Subsequently, HD Supply bid on and purchased Orco, according to an HD Supply spokesperson.

"The acquisition of ORCO's assets provides HD Supply White Cap with an increased ability to provide world-class service to our existing and prospective customers," said Tom Lazzaro, president, HD Supply White Cap. "It further strengthens our leading position in an important region with strong growth potential."

ORCO Construction Supply will be fully integrated into the HD Supply White Cap business and will begin operating under the HD Supply White Cap brand following the closing of the transaction.