Lee exits plumbing company to Home Depot

Boston-based private equity firm Thomas H. Lee Partners has sold plumbing fixture distributor National Waterworks to Atlanta-based chain The Home Depot chain for $1.35 billion (€1.11 billion). Lee and JPMorgan Partners, the private equity arm of JPMorgan Chase, have owned the company for three years.

The two private equity firms paid a United States Filter Corp., a division of Paris-based Vivendi Environment, about $620 million for the distribution business in November 2002. In 2001, the business had sales of around $1.1 billion.

National Waterworks is a great example of a growth-buyout company that, through exceptional management and strong marketplace positioning, can achieve rapid and sustainable growth. Tony DiNovi, co-president, Thomas H. Lee Partners

The Waco, Texas-based company distributes a full line of pipes, fittings, valves, meters, fire hydrants and repair products for residential and commercial plumbing. It will be part of Home Depot’s maintenance, repair and operations (MRO) growth platform. Last year, National Waterworks generated net sales of $1.5 billion. The company sells its products directly to contractors and municipalities in 36 states.

“National Waterworks is a great example of a growth-buyout company that, through exceptional management and strong marketplace positioning, can achieve rapid and sustainable growth,” Tony DiNovi, co-president at Lee, said in a statement. “This transaction is a great outcome for both National Waterworks and The Home Depot as they fulfill the growing need for water infrastructure products.”

The company filed paperwork with the Securities and Exchange Comission for an initial public offering earlier this year. 

Thomas H. Lee Equity Fund V closed in 2001 on $6.1 billion.