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Home Depot says HD Supply sale has been finalized

Home Depot announced late Thursday that it has finalized the sale of its HD Supply unit to a group of investors.

Home Depot has confirmed that it will sell HD Supply for $8.5 billion, $1.8 billion less than the original terms with three private equity firms. The company expects to net approximately $7.9 billion in cash proceeds from the sale.

The company noted its modified "Dutch auction" tender offer, to purchase up to 250 million shares at a price range of $37 to $42 per share, will expire at 5 p.m. on Aug. 31. The company said it "remains committed to its $22.5 billion recapitalization plan."

Home Depot will guarantee $1 billion of the debt and retain a 12.5 percent stake in the division. The company is expected to still move forward with its $22.5 billion share repurchasing plan.

This past June, Home Depot announced its intention to sell its HD Supply to Bain Capital, Carlyle Group and Clayton, Dubilier & Rice for $10.3 billion. But in the span of two short months, a credit crisis developed on Wall Street, making investment banks more cautious and putting the squeeze on corporate buyouts.


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