Carlyle-Backed HD Supply Plans to Raise $1.33B in IPO

(Reuters) – Industrial and construction supplies distributor HD Supply Holdings Inc. — backed by private equity firms Bain Capital LLC, Carlyle Group LP and Clayton Dubilier & Rice LLC — said it planned to raise as much as $1.33 billion in an initial public offering.

The company, a former division of Home Depot Inc., is offering 53.2 million shares priced between $22 and $25 each, a filing with the SEC shows.

HD Supply was taken private for $8.5 billion by a group including Bain, Carlyle and CD&R in 2007. The three firms as a group own 84% of the company, or 109.4 million shares, according to the filing. At $25 per share, the three buyout firms’ shares would be worth a combined $2.7 billion.

Bain Capital Integral Investors 2006 LLC owns 36,471,875 shares; Carlyle Partners V LP and related funds own 36,471,872 shares; and Clayton, Dubilier & Rice Fund VII LP and related funds own 36,461,875 shares, the filing shows.

HD Supply’s offering comes amid a U.S. housing market recovery after a downturn that led to the 2008 recession. The rising prices for new homes are boosting demand for contractors and renovations.

HD Supply, which has more than 600 locations across the United States and Canada, generated sales of $8 billion in 2012.

Bank of America Corp, Barclays, J.P. Morgan and Credit Suisse are among the lead underwriters of the IPO.

Additional reporting and editing by Lawrence Aragon for peHUB

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