The private equity owners of HD Supply, Atlanta, GA, are preparing to take the distributor public, Reuters reported. Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, which purchased HD Supply from Home Depot Inc. (NYSE: HD) six years ago, are reported hoping to raise $8.5 billion in the proposed initial public offering.
According to Reuters, Bain Capital, Carlyle Group and Clayton, Dubilier & Rice plan to interview investment banks next week to select underwriters for the IPO.
HD Supply is No. 3 on MDM's list of top industrial distributors and also appears on the electrical and building materials/construction lists. Reuters attributes the move to an "attempt to capitalize on the rebound in the U.S. housing sector."
Home Depot maintained a 12.5 percent stake in HD Supply as part of the buyout.
For the nine months ended Oct. 28, 2012 – the latest data available – sales increased 12.4 percent year-over-year to $6 billion. The distributor reported a loss for the period of $466 million.