Posted June 6, 2017

HD Supply to sell Waterworks business

Private investment firm Clayton, Dubilier & Rice to pay $2.5 billion in cash for business.

HD Supply Holdings, Inc. announces that it has entered into a definitive agreement to sell its Waterworks business unit, the nation’s largest distributor of water, sewer, storm and fire protection products, to Clayton, Dubilier & Rice for a purchase price of $2.5 billion in cash.

The transaction is expected to close in HD Supply's third fiscal quarter of 2017 subject to customary regulatory approvals.

"After a detailed evaluation, we determined that a sale of our Waterworks business unit to Clayton, Dubilier & Rice is in the best interests of our Waterworks associates and HD Supply stockholders," said Joe DeAngelo, HD Supply Chairman, President & CEO. "This significant strategic transaction will further simplify and focus HD Supply on our highest value creation opportunities, accelerate debt reduction, create additional cash to enable next generation
growth investments and innovation as well as return cash to HD Supply stockholders."

Founded in 1978, Clayton, Dubilier & Rice is a private investment firm. Since inception, CD&R has managed the investment of more than $22 billion in 72 companies representing a broad range of industries with an aggregate transaction value of more than $100 billion. The firm has offices in New York and London. For more information, visit