What was changed
In October 2016 Jana Partners disclosed an 8.1% stake in HD Supply, a distributor of maintenance and repair products, saying the shares were undervalued and that it had discussed strategic alternatives and capital allocation with management.
HD Supply stayed independent for years, but the sale route stayed open. In November 2020, as demand for professional MRO supply surged, its former parent The Home Depot agreed to buy it for $56 a share in cash, an enterprise value of roughly $8 billion.
The Home Depot framed the deal as entry to a highly fragmented $55 billion MRO market. The tender closed December 24, 2020 with about 83% of shares tendered, and HD Supply became a wholly owned Home Depot subsidiary.
What it achieved
Home Depot paid $56 a share in cash, about $8B enterprise value, taking HD Supply private as its MRO arm; Jana's pressure kept the exit route open.
Why it worked
Jana's filing formally put strategic alternatives on HD Supply's agenda.
Home Depot saw MRO as a natural extension of its professional-customer business.
An all-cash $56 offer rewarded shareholders who had held since the Jana campaign.
The deal reunited two businesses that already shared supply chains and customers.
What can be applied
A 13D that formally opens strategic alternatives reframes a company as a potential deal for years; the buyer list can include the parent that once spun it off.
Aftermath
HD Supply was delisted and folded into Home Depot's MRO operations, which the retailer reported as accelerating sales growth in its professional business. Jana had exited its position long before the deal, but the strategic-review lane its 13D opened was the one the sale eventually took.
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