Supply House Times

Aug. 27, 2007 - Home Depot Chops HD Supply Price

August 27, 2007

Home Depot Inc. marked down the price of HD Supply by 18 percent over the weekend as it offered other concessions to sell the construction supply business for $8.5 billion, according to Reuters and Bloomberg.

Home Depot had announced last June that it would sell the division for more than $10 billion to private equity firms, Bain Capital LLC, Carlyle Group and Clayton Dubilier & Rice. But both seller and buyer had to renegotiate since the housing market continued to reach lower levels since the original deal and easy credit to finance such acquisitions dried up.

The news agencies reported today that the buyout group will put in an extra $450 million in upfront money, and that Home Depot will take on $1 billion of the supply unit’s debt and also keep a 10 percent stake. However, both news services reported that a final deal has not been signed.