A group of investors led by District-based private equity giant The Carlyle Group has agreed to purchase Home Depot’s wholesale distribution business for $8.5 billion, $1.8 billion less than the purchase price agreed to in June.
The lower price for HD Supply was attributed to uncertainty in the housing market and a tight credit market.
Recommended Stories
The company and the group worked through the week to preserve the agreement.
“Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale delivers shareholder value today and in the future, as we will share in HD Supply’s upside potential. We are now focused on our retail business,” Chairman and Chief Executive Officer Frank Blake said in a statement.
“As the buyer, we are particularly gratified to have reached this favorable outcome in the face of challenging conditions. We look forward to closing the transaction and working with the HD Supply management team on the company’s next phase of growth as an independent enterprise,” Carlyle added in a statement on behalf of the buyers.
The other buyers joining Carlyle are Bain Capital Partners and Clayton, Dubilier & Rice.
