As announced earlier this week, the terms in addition to the purchase price of $8.5 billion, would include:
- The Home Depot to own a 12.5% equity
interest for $325 million.
- The Home Depot guaranteed a $1 billion senior secured loan of HD Supply.
The acquisition includes a portfolio of 11 businesses and HD Supply Canada. The company will retain the HD Supply name.
“We are thrilled to be associated with this group of distinguished private equity firms, and we are excited about the tremendous opportunities that lie ahead for our associates, our customers and our new owners,” said Joe DeAngelo, chief executive officer of HD Supply. “As an independent company, we can now accelerate our momentum in serving the comprehensive needs of our professional customers with the best products and customer service in the industry.”
In addition, as previously announced, The Home Depot’s 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 Friday, Aug. 31, 2007. The company remains committed to its $22.5 billion recapitalization plan announced on June 19, 2007.