Home Depot Jumps Into Water

The acquisition of National Waterworks moves the big retailer beyond its consumer base.
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Home Depot

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agreed Tuesday to buy the National Waterworks water business held by JPMorgan Partners and Thomas H. Lee.

Terms weren't disclosed, but the company's private equity backers said 2004 sales were $1.5 billion. National Waterworks, of Waco, Texas, distributes a full line of pipes, fittings, valves, meters, fire hydrants, service and repair products and other components that are used to transport water to and from residential and commercial locations.

Home Depot said the deal will help it expand beyond its current retail channels.

"The Home Depot Supply is expanding its business by growing organically and acquiring best-in-class companies that share our commitment to customer service, operational excellence and growth," said Joe DeAngelo, president, The Home Depot Supply.

The companies expect the deal to close by August.

On Tuesday, Home Depot was flat at $45.42.