NEW YORK (Reuters) - HD Supply, a one-time division of Home Depot Inc that was taken private for $8.5 billion in 2007, has chosen Bank of America Merrill Lynch , Barclays and JPMorgan Chase to lead a proposed initial public offering, people familiar with the matter said.

Credit Suisse Group is also among the four banks chosen to lead the IPO, which would come six years after private equity firms Bain Capital, Carlyle Group and Clayton, Dubilier & Rice led the buyout, the people said on Friday.

The people asked not to be named because the decision is not public. CD&R and Barclays declined to comment. Representatives for the other buyout firms and investment banks did not immediately respond to requests for comment.

Home Depot, which maintained a 12.5 percent stake in HD Supply as part of the 2007 buyout, did not immediately respond to requests for comment.

HD Supply is one of the largest distributors of construction, industrial and maintenance supplies in North America. The IPO would be the latest attempt to capitalize on the rebound in the U.S. housing sector.

(Reporting by Soyoung Kim and Olivia Oran in New York; Editing by Steve Orlofsky)