Home Depot and its former division HD Supply came to an agreement of a post-closing purchase price adjustment that will see Home Depot pay $22 million to HD Supply.
Home Depotand its former division
Supplycame to an agreement of a post-closing purchase price adjustment that
will see Home Depot pay $22 million to HD Supply.
The Atlanta-based retailersold
HD Supply in August 2007for $8.5 billion to three of the world's
leading private equity firms: Bain Capital; The Carlyle Group; and Clayton,
Dubilier and Rice (CD&R), with Home Depot retaining a 12.5 percent equity
stake in the company.
"We are very pleased to have reached an agreement and
to put this matter behind us," said Joe DeAngelo, HD Supply's CEO.
"The Home Depot is a valued customer and minority investor of HD Supply,
and we look forward to continuing our good relationship and to serve
The post-closing adjustment also includes other non-cash
considerations, according to the announcement.
With some 900 locations, HD Supply is a diversified,
wholesale distributor in the infrastructure and energy, maintenance, repair and
improvement and specialty construction markets.
In connection with its minority stake in HD Supply, Home
Depot recently announced that it would record a pre-tax charge of $163 million
for a write-down of its investment in HD Supply. The write-down reflects a
lower valuation for its investment and is consistent with the decrease in the overall
market since 2007. According to HD Supply, this accounting adjustment does not
impact HD Supply's operations, funding or access to capital.
HD And HD Supply Agree On Post-Closing Price
February 3, 2009