HD Supply sale goes through at cut rate, reports say

August 27, 2007

The Home Depot Inc.'s board yesterday agreed to slash the sale price for its wholesale business by 18 percent, to $8.5 billion, a sign that disarray in credit markets is taking the momentum out of the private equity buyout boom.

Home Depot in June had agreed to sell the business for $10.3 billion to private equity investors, including Bain Capital Partners, Carlyle Group and Clayton Dubilier & Rice. In addition to accepting the lower price, the Atlanta-based home improvement giant yesterday agreed to guarantee $1 billion of debt that the private equity firms are taking on in the deal.

HD Supply, which does $12 billion a year in sales, has several units with a presence in Indiana.

Waterworks, a supplier of water, sewer and other municipal water systems, has locations in Indianapolis and Fort Wayne.

Creative Touch Interiors, which helps production homebuilders design interiors, has a location in Indianapolis.

Construction Supply, which sells specialty hardware, tools and materials to contractors, has locations in Indianapolis and Fort Wayne.

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