Home Depot Inc. has agreed to sell its supply division to three private equity firms, sources said on Tuesday, in a deal worth more than $10 billion.

Bain Capital, Carlyle Group and Clayton, Dubilier & Rice won the auction and were finalizing the deal early on Tuesday, sources close to the process told Reuters.

HD Supply was put up for sale earlier this year, with investment bank Lehman Brothers hired to auction the business, which sells building materials, waste water and utility products to municipalities and contractors.

Several groups of private equity firms showed initial interest in the unit, but backed away late in the process as the slowdown in the U.S. housing market pressured the business, sources involved with the auction previously told Reuters.

By selling HD Supply and focusing on the retail stores, Home Depot is repudiating former CEO Robert Nardelli's efforts to expand the unit.

The company launched the supply business in 1997 and expanded it by acquiring companies like water and sewer products supplier National Waterworks Holdings in 2005 and paying $3.2 billion for Hughes Supply in 2006. Clayton, Dubilier & Rice was among the final bidders in the Hughes Supply deal, according to a source close to the firm.

The company came under pressure from shareholders pushing Home Depot to shed the unit, saying it was weighing down the retailer.

The companies declined to comment. Home Depot shares closed at $37.96 on Monday.

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