(Reuters) - HD Supply Holdings Inc (O:HDS) is preparing to explore a sale of Waterworks, the largest U.S. provider of water and sewer products to contractors and municipalities, following interest from buyout firms, according to people familiar with the matter.
A divestment of Waterworks, which could fetch more than $2 billion, would allow HD Supply to pay down some of its $4.1 billion debt as it positions its construction and facilities maintenance businesses to benefit from U.S. President Donald Trump's emphasis on infrastructure spending and tax reform.
HD Supply has been fielding interest in Waterworks from private equity firms with advice from investment bank Goldman Sachs Group Inc (N:GS), the people said this week. While it will discuss some of these acquisition proposals in the coming weeks, there is no certainty it will decide to sell Waterworks, the people added.
The sources asked not to be identified because the deliberations are confidential. HD Supply and Goldman Sachs declined to comment.