Core & Main IPO price could hinge on Biden

摘要

Core & Main, the US-based waterworks distributor owned by private equity giant Clayton, Dubilier & Rice, has filed for an initial public offering on the New York Stock Exchange, under the ticker "CNM". The group - which once belonged to USFilter before spending 12 years as part of The Home Depot - generated adjusted EBITDA of $342.3 million on revenues of $3,642.3 million in the year ended 31 January 2021, with around 89% of sales generated from water-related products (see chart below). Around half of its top-line growth since being acquired by CD&R in August 2017 has come from acquisitions, and the fragmented nature of the waterworks distribution sector in North America means the roll-up potential is still considerable. Reading between the lines, however, Core & Main appears to have lost market share to its main rival - the much larger Ferguson -under CD&R's ownership.