HD Supply is going public and many private equity firms are preparing for the IPO. This comes six years after the industrial distribution company was bought out of Home Depot Inc for a whopping US$8.5 billion.
The firms girding for the IPO include Bain Capital, Clayton, Dubiller and Rice and the Carlyle Group. These were the same firms that led the deal back in 2007. Amongst its obligations is to select underwriters for the IPO, according to three sources familiar with the deal.
HD Supply is one of the biggest distributors for construction, industrial and maintenance material for the North American market. The IPO would be the latest attempt to capture the windfall from the rebounding US housing market after the 2007 market crash.
Home Depot for its part is maintaining a 12.5% share in HD Supply as part of the deal. Bain and CD and R declined to comment while Carlyle and HD Supply did not return calls for comment.
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