Shares of HD Supply (HDSGet Report)  were rising in trading Wednesday after the company announced its intention to separate its Facilities Maintenance division from its Construction & Industrial business into two independent publicly traded companies. 

The separation is expected to be completed by the middle of fiscal 2020. 

“After years of growth, Facilities Maintenance and Construction & Industrial have achieved sufficient scale to operate as independent companies,” said CEO Joe DeAngelo. “Each business is now positioned as a leader in its respective market and has the ability to enhance its competitive advantage by further differentiating its best-in-class customer service through additional focus.”

The Facilities Maintenance division, which will be renamed HD Supply Facilities Maintenance, generated about $3 billion in net sales in fiscal 2018 ended Feb. 3, 2019. DeAngelo will serve as CEO.



John Stegeman, currently president of Construction & Industrial, will serve as CEO of Construction & Industrial White Cap business, which will provide concrete accessories and chemicals, tools and equipment to professional contractors. That division also generated about $3 billion in net sales in fiscal 2018.