Distributors

Report: HD Supply to go public

The private equity owners of HD Supply are planning on taking the company public, the Reuters News Agency reported today.

Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, the three firms that led the buyout of the distribution company from Home Depot for $8.5 billion, plan to interview investment banks next week to select underwriters for the IPO, the news agency reported.

Home Depot Supply is one of the largest construction, industrial, maintenance and electrical supply distributors in North America. The company has more than 630 locations.

Home Depot divested the company in 2007 after building it into a $12 billion company. As part of the buyout, Home Depot still maintains a 12.5% interest in HD Supply.

After the purchase, the credit crisis hit and the housing market dropped sharply. But in the past few years, the residential and commercial market has rebounded and HD Supply reported $7 billion in revenues and more than $500 million in earnings before interest, tax, depreciation and amortization for the fiscal year ended January 2012, Reuters said.

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