Shares of Home Depot climbed sharply after announcing plans to repurchase $22.5 billion in stock, which will be partly funded with proceeds from the sale of the home-improvement retailer's supply business.
Home Depot confirmed late Tuesday that it will sell its supply division to three private equity firms in a $10.3 billion deal, which unloads a business the home-improvement retailer's former chief executive worked to expand.
Shares of Home Depot , a Dow component, moved higher.
The home improvement industry leader said the unit, which provides building materials to contractors, would be sold to Bain Capital, Carlyle Group and Clayton, Dubilier & Rice in a deal expected to close in the retailer's third fiscal quarter.
HD Supply was put up for sale earlier this year, with investment bank Lehman Brothers overseeing the auction.