Grainger agreed to sell its China distribution business in the hopes of altering its focus on key industries and geographies. The stocks were sold to the company's management team China-based venture capital firm Sinovation Ventures.

Grainger announced that it would be selling its China distribution business to its management team Sinovation Ventures. The company, however, plans to retain the global sourcing operations of its China business.

Grainger would also continue its support for the private label products portfolio. According to the chief executive officer of Grainger DG Macpherson, the companies commend its team members for pushing the brand name to achieve profitable growth over the years. The deal was also said to close before the end of 2020. He also added that the company's management team is strong and well-positioned that would maintain the success of Grainger in China.

At present, Granger continues to enjoy a relentless focus on providing customer value through the endless assortment and high-touch offerings. It also provides these products and services with a geographical advantage that would make the most sense for the company to sell its China business to the management team.

The shares of the company remained flat during the extended trading session last Monday and traded up to 0.1 percent. The company has been the leading broad line supplier of repairs, maintenance, and operation of products that supply businesses and institutions.

In 2019, Grainger garnered sales of up to 11.5 billion USD making it the leading broad line supplier of maintenance, repair, and operating products in North America. It also operates primarily in Japan, Europe, and North America.

In other news, it was reported that Grainger perceived an improvement to its Relative Strength (RS) rating last Monday's trading session. It rose from 67 to 72 this week, marking significant changes to the company. It was said that the best stocks to keep an eye on and invest in are those that have relative price strength.

It was also found that in the last century, the market's biggest winners are those that garnered an RS rating of more than 80 during the early stages of their company transitions. Analysts are now eyeing as to whether Grainger can maintain and prove that their renewed price strength can hit the 80 benchmarks.

At present, Grainger stands with a 330.50 buy point. Its EPS growth declined from -2 percent to -6 percent, but the top-line improved from three to seven percent. The company also sits as the top eight in retail or wholesale building products industry group.