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.