The Home Depot Inc.(NYSE: HD), the largest home improvement retailer, said Monday that it could sell its wholesale distribution unit as part of its strategic revision.
The company's HD Supply business, which sells goods to contractors, accounted for $3.5 billion of its $23.1 billion in total sales for the third quarter of fiscal 2006.
Frank Blake, Home Depot's chairman, said that the company wants to focus on its retail business and is evaluating to see if there are alternatives uses of the division that would benefit shareholders.
The statement said that in addition to selling the division, it was also considering a spinoff or IPO of the division.
Shares of The Home Depot rose 1.07 percent, or 44 cents, to $41.45 in afternoon trading on the New York Stock Exchange.