Significant Growth and Consolidation Opportunities for the Second Largest
Industrial and Construction Products Distributor in North America
BOSTON, WASHINGTON, and NEW YORK, June 19 /PRNewswire-FirstCall/ --
Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice, Inc.
today signed a definitive agreement with The Home Depot (NYSE: HD) to
acquire its wholesale distribution business, HD Supply, for $10.3 billion.
Bain Capital, Carlyle and CD&R will invest equal amounts of equity in the
transaction. The transaction is subject to customary regulatory reviews and
is expected to close in the third quarter of 2007.
With 2006 revenues of more than $12 billion, HD Supply is the second
largest distributor of construction, industrial and maintenance supplies in
North America, with number one positions in five of twelve industry
verticals. The Company has nearly 1,000 locations in North America and
employs 26,000 associates.
"HD Supply enjoys premium positions in an attractive, $400+ billion
market where we have deep experience and prior investment success," said
David A. Novak, Partner, CD&R. "Working with our partners, as well as a
strong management team, we are confident that we can achieve multiple
strategic and operational improvements to enhance the company's
performance."
Carlyle Managing Director Dan Pryor said, "Management and employees of
HD Supply have built tremendous franchises in various building products
markets. We look forward to working with the company to deliver more value
to customers by enhancing and growing these businesses."
Steve Zide, a Managing Director at Bain Capital, said, "HD Supply is a
broadly-diversified, best in class company that will thrive as a focused,
independent market leader. We are excited to put our extensive operations
and distribution business experience to work in helping the company's
strong management team seize this unique opportunity."
Merrill Lynch & Co., J.P. Morgan Securities Inc. and Citigroup Global
Markets acted as M&A advisors and Debevoise & Plimpton LLP acted as legal
advisor to the private equity firms. Merrill Lynch & Co., J.P. Morgan
Securities Inc. and Lehman Brothers are providing financing for the
acquisition. PricewaterhouseCoopers Transaction Services group provided
financial, tax, benefits and insurance risk management services on behalf
of the consortium.
About Bain Capital:
Bain Capital (http://www.baincapital.com) is a global private investment firm
that manages several pools of capital including private equity, high-yield
assets, mezzanine capital and public equity with approximately $50 billion
in assets under management. Since its inception in 1984, Bain Capital has
made private equity investments and add-on acquisitions in over 240
companies around the world, including such distribution companies as
Brenntag, Unisource, Keystone Automotive Operations and Broder Brothers.
The firm has long been an active investor in transactions in which non-core
assets are carved out of larger companies to pursue a focused growth plan,
including the purchase of Dunkin' Brands, Sensata Technologies, Burger
King, NXP Semiconductors, and Bombardier Recreational Products.
Headquartered in Boston, Bain Capital has offices in New York, London,
Munich, Tokyo, Hong Kong and Shanghai.
About The Carlyle Group
The Carlyle Group is a global private equity firm with $58.5 billion
under management. Carlyle invests in buyouts, venture & growth capital,
real estate and leveraged finance in Asia, Europe and North America,
focusing on aerospace & defense, automotive & transportation, consumer &
retail, energy & power, healthcare, industrial, technology & business
services and telecommunications & media. Since 1987, the firm has invested
$28.3 billion of equity in 636 transactions for a total purchase price of
$132.0 billion. The Carlyle Group employs nearly 800 people in 18
countries. In the aggregate, Carlyle portfolio companies have more than $87
billion in revenue and employ more than 286,000 people around the world.
About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. (CD&R) is a leading private equity
investment firm that has earned consistent, superior investment returns
using an integrated operational and financial approach to building and
growing portfolio businesses. CD&R's portfolio investments include Rexel
Group, the world's leading distribution network of electrical supplies and
The Hertz Corporation, among other market leaders. CD&R recently announced
agreements to acquire U.S. Foodservice from Royal Ahold and The
ServiceMaster Company in transactions valued at $7.1 billion and $5.5
billion, respectively. The firm is based in New York and London.
http://www.cdr-inc.com.
SOURCE Clayton Dubilier & Rice; The Carlyle Group; Bain Capital
Partners
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Related links:
http://www.cdr-inc.com
CONTACT:
Alex Stanton, of Bain Capital Partners,
+1-212-780-0701, alex@stantoncrenshaw.com; or Thomas Franco, of
Clayton, Dubilier & Rice, +1-212-407-5200, tfranco@cdr-inc.com;
or Chris Ullman, of The Carlyle Group, +1-202-729-5399,
chris.ullman@carlyle.com
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