After a marathon negotiating session that lasted through the weekend, 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.
"Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale deliver 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," said Frank Blake, chairman and CEO of Home Depot.
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 f