Report: HD Supply Going Public
FEATURE
Private equity owners are preparing to take HD Supply public, Reuters reports.
“Bain Capital, Carlyle Group and Clayton, Dubilier & Rice, the buyout firms who jointly led the deal in 2007, plan to interview investment banks next week to select underwriters for the proposed initial public offering (IPO),” according to Reuters.
The three equity owners paid Home Depot $8.5 billion for HD Supply, which reported $7 billion in revenues for 2012. Home Depot still owns 12.5% of the company.
HD Supply includes three fastener companies Home Depot acquired in 2005 and 2006: Crown Bolt, Brampton Fastener (Brafasco) and Western Fasteners.
Home Depot launched the supply business in 1997 and expanded it by paying $3.2 billion for Hughes Supply in 2006.
Investors seemed to react positively to the IPO news.
“The company’s size should help,” reports InvestorPlace.com. “Unlike Home Depot — which operates a chain of massive store locations — HD Supply is an industrial distribution company.”
HD Supply operates 630 locations in the U.S. and Canada, offering 1 million SKUs for facilities maintenance, power solutions, flooring, fasteners, pipes and fittings.
“HD Supply’s customer base is highly diverse, with about 440,000 contractors, government entities, home builders and industrial operators,” InvestorPlace.com noted. “In fact, Home Depot only accounts for 3.9% of HD Supply’s sales.” ©2013 GlobalFastenerNews.com
FIN currently tracks 19 publicly-held companies with major fastener revenue.
The list of North American fastener stock companies changed in recent weeks with the Hillman acquisition of H. Paulin, which will now be reported as part of Hillman Canada.
A summary of each company is available to FIN subscribers by clicking on Fastener Stocks or to non-subscribers at Article Store.
Related Stories:
• FDI: February Distribution Slows
• EU Places AD Levy on Chinese Screws to Philippines
Related Links:
There are no comments at the moment, do you want to add one?
Write a comment