Competition for Home Depot’s wholesale supply business is already heating up, even though the company has yet to formally announce an auction. And the roster of interested bidders reads like a private equity hall of fame. According to The Financial Times, three teams of private equity firms have formed to consider bids for the business, which could go for about $11 billion.
Bain Capital has joined forces with the Carlyle Group and Clayton Dubilier & Rice, while Thomas H. Lee Partners is teaming up with Goldman Sachs’s buy-out unit and CCMP, the former private equity arm of JPMorgan Chase, the British newspaper said. A third team of investors reportedly includes the Blackstone Group, Kohlberg Kravis Roberts, Leonard Green Partners and the Texas Pacific Group.
Earlier this month, Home Depot said that it had hired Lehman Brothers to consider a sale or spinoff of its contractor-supply business, a move that would undo an ambitious and expensive diversification strategy advocated by its recently ousted chief executive, Robert L. Nardelli.
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