The Business
Ohio Water and Waste Supply Co., Inc. ("OWWS") is the largest independent wholesaler of water and wastewater (sewer) products to municipalities, contractors, and public and private water systems in Ohio. OWWS distributes a full line of pipe, fittings, valves, water meters, fire hydrants, maintenance and repair products, and other components that are used to transport clean water and wastewater between reservoirs, treatment plants and residential/commercial locations. The products distributed by OWWS are integral to building, repairing and maintaining water and wastewater systems and serve as part of the basic municipal infrastructure required to support population and economic growth.

The Industry
OWWS participates in the U.S. waterworks market, a highly fragmented $11 billion segment of the $170 billion MRO industry. The nation's waterworks systems are characterized by outdated infrastructure, potential water shortages and pollution. These factors, combined with steady population growth, more stringent environmental regulations and recent legislative activity, are expected to support strong industry growth for the foreseeable future. HD Supply and Ferguson Enterprises, Inc., a subsidiary of Wolseley plc, collectively account for more than 30% of U.S. waterworks industry sales.

The Process
Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to OWWS and its shareholders. Prestwick Partners designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with HD Supply. The sale of OWWS is Prestwick's second transaction in the waterworks industry. In October 2006, Prestwick represented Fargo, North Dakota-based Northern Water Works Supply, Inc. in a sale to Ferguson Enterprises, Inc.