Potential Buyers for HD Supply?

March 1, 2007

More about: HD Supply, Mergers/Acquisitions

The Financial Times is reporting that three teams of private equity firms are preparing for possible bids for HD Supply. Teams include: Bain Capital, Carlyle Group and Clayton Dubilier & Rice (owner of Rexel); Thomas H Lee Partners, Goldman Sachs and CCMP; and Blackstone, Kohlberg Kravis Roberts, Leonard Green Partners and Texas Pacific Group.

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Home Depot CEO Frank Blake told analysts and investors at the annual meeting this week that HD has not yet made a decision to sell. The Financial Times reports that the unit could get up to $11 billion.FT says Bain and Carlyle could be naturals for the ownership of HD Supply because of their investments in retail organizations - that said, HD Supply is a wholesale business, with a different operating structure from retail, and Clayton Dubilier & Rice, Bain and Carlyle's reported partner, has extensive experience investing in large wholesaler-distributors, including Rexel and lab supply wholesaler VWR International.

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Former Wolseley CEO Charlie Banks is an operating partner at CD & R. Leonard Green Partners is also known in the distribution world; it bought White Cap Construction Supply and sold it to Home Depot. FT says that Thomas H Lee Partners and JPMorgan owned National Waterworks, now part of HD Supply.

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HD Supply White Cap Agrees to Buy GSI
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HD to Evaluate "Strategic Alternatives" for HD Supply Business ;
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