Home Depot Sells HD Supply
In February 2007, the Home Depot began a strategic review of HD Supply, the company’s wholesale distribution division, in an effort to increase the company’s focus on its core retail business. After a thorough review of alternatives, the board unanimously approved the sale of HD Supply to private equity firms Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice for $10.3 billion. Subject to certain regulatory requirements and contingencies, the sale of HD Supply is expected to close in the third fiscal quarter of 2007. The transaction is not conditioned upon financing.
“HD Supply is a leader in its industry. We are proud of the business we built and know that it will continue to grow and flourish under new ownership,” said Frank Blake, chairman and CEO. “Today’s decision reflects our continued commitment to enhancing shareholder value, through an exclusive focus on our retail business and the return of cash to our shareholders. This year alone we will spend over $2 billion in support of our top five retail priorities.”
The board of directors also authorized a $22.5 billion increase in its share repurchase program. It is the company’s intent to repurchase up to $22.5 billion in shares as soon as practicable. The company will fund the $22.5 billion share repurchase with the net proceeds from the sale of HD Supply, existing cash on had and the net proceeds from an anticipated $12 billion issuance of senior unsecured notes.
Go to www.homedepot.com for more information.
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