ATLANTA — The Home Depot Inc., the world’s largest home improvement store chain, said Monday it will consider shedding its division serving contractors, homebuilders and other business customers, distancing itself further from the strategies advanced by former Chief Executive Bob Nardelli. Its shares rose more than 2 per cent in early trading.The Atlanta-based company said it may sell or spin off its wholesale distribution arm, Home Depot Supply.Frank Blake, the current chairman and CEO of The Home Depot, said the company wants to concentrate more on its retail business.

Just last year, Home Depot announced it had completed its $3.2-billion purchase of Orlando, Fla.-based Hughes Supply Inc., a distributor of construction, repair and maintenance products.

The deal, Home Depot’s largest acquisition ever, doubled the size of HD Supply division, which serves business customers including municipalities and maintenance professionals.

The division was seen as a big opportunity for growth by former Mr. Nardelli, who resigned in early January after six years at the helm of Home Depot.

Mr. Nardelli had said repeatedly that he believed the company’s strategy under his watch did not need changing. But earlier this month, the company said it is giving a seat on its board to an investment group that wants the company to consider, among other things, a leveraged buyout as a way to generate shareholder value.

The group, Relational Investors LLC, had threatened a proxy fight over the home-improvement company’s strategic direction, part of an undercurrent that led to Mr. Nardelli’s resignation.

Mr. Blake said the announcement regarding Home Depot Supply was part of a strategic review the company conducted in November.

HD supply has annual revenues of approximately $12-billion, has nearly 1,000 locations nationwide and in Canada, and employs more than 26,000 associates, the company said.

Home Depot has retained the investment firm Lehman Brothers as its financial adviser to assist in this process.

Home Depot shares rose 92 cents, or 2.3 per cent, to $41.92 in morning trading on the New York Stock Exchange.

NSF Partners with International Code Council to Ensure Ongoing Compliance with International Plumbing Code

February 7, 2006 – Ann Arbor, MI and Falls Church, VA — NSF International and the International Code Council (ICC) today announced a first-of-a-kind agreement that will make NSF American National Standards available to building code and plumbing code officials through the International Code Council.

Under the new agreement, both non-profit organizations will work together to provide ICC members all NSF/ANSI standards referenced in the International Plumbing Code (IPC).  IPC currently references several NSF/ANSI drinking water product and food equipment standards.  The IPC includes regulations for plumbing facilities without restricting the use of new materials, products or methods of construction.

Having ready access to the standards referenced in IPC will result in additional time and cost savings for building and plumbing officials and will help consolidate these requirements throughout the industry.  Members who will benefit from the new agreement include:

• fire officials,
• architects,
• engineers,
• builders,
• contractors,
• elected officials,
• manufacturers, and
• others in the construction industry (state, county and municipal code enforcement).

“This agreement demonstrates our commitment to public health protection,” said Bob Ferguson, NSF Vice President of Water Systems.  “Working together, we will provide services to building code and plumbing code officials to make sure they obtain the information they need regarding code and regulatory compliance.  We are two organizations with a similar mission – we help the world live safer.”

These NSF/ANSI standards referenced in the IPC include: 

• NSF/ANSI Standard 3: Commercial Warewashing Equipment
• NSF/ANSI Standard 14: Plastics Piping System Components and Related Materials
• NSF/ANSI Standard 18: Manual Food and Beverage Dispensing Equipment
• NSF/ANSI Standard 42: Drinking Water Treatment Units – Aesthetic Effects
• NSF/ANSI Standard 44: Residential Cation Exchange Water Softeners
• NSF/ANSI Standard 53: Drinking Water Treatment Units – Health Effects
• NSF/ANSI Standard 58: Reverse Osmosis Drinking Water Treatment Systems
• NSF/ANSI Standard 61: Drinking Water System Components – Health Effects, and
• NSF/ANSI Standard 62: Drinking Water Distillation Systems

“The agreement between ICC and NSF underscores our commitment to public health and safety,” said International Code Council CEO Rick Weiland. “This is the beginning of a collaborative effort between both organizations to support the plumbing and HVAC industries.”

NSF is a non-profit organization committed to protecting the public by certifying products and writing standards for food, water, air and consumer goods.  Similarly, ICC is committed to providing quality codes, standards and services to stakeholders concerned with the safety and performance of the building environment. 

If you would like additional information on the NSF/ICC agreement, please contact Bob Ferguson at 734.827.6883 or ferguson@nsf.org.

Source:

NEWARK, N.J. – American Standard Cos. said Thursday it will sell its well-known plumbing fixture business and spin off a unit that makes auto braking systems, then rename the company Trane after its signature brand of air-conditioning systems.

Wall Street applauded the breakup, sending the stock rising more than 7 percent to $53.25, its highest level since the company went public in 1995.

Although American Standard, based in Piscataway, N.J., is best known for its kitchen and bath products, the Trane operation brought in $6.8 billion, or 60 percent of its sales in 2006.

Trane is among the leading suppliers of commercial and residential heating, ventilation and air-conditioning systems. The new Trane company will retain the right to use the American Standard brand name for such products.

Trane on Wednesday announced plans to invest nearly $3.4 million into expanding its Fort Wayne operations, including a warehouse.

Trane’s vehicle control systems business, which posted $2 billion in revenue in 2006, will be spun into a publicly traded company to be called WABCO. American Standard shareholders will be issued one share of WABCO stock for every three American Standard shares currently owned.

American Standard also said it will sell its bath and kitchen business, which generated $2.4 billion in revenue in 2006. The company plans to use proceeds from that sale to pay down debt and buy back Trane common stock.

The breakup, which does not require shareholder approval, is to be completed by early fall.