Home » HD Supply to Receive $22M Payout from Home Depot
HD Supply to Receive $22M Payout from Home Depot
February 1, 2009
HD Supply, diversified wholesale distributor in the infrastructure and energy, maintenance, repair and improvement and specialty construction markets, has reached an agreement with The Home Depot, Atlanta, GA, related to post-closing purchase price adjustments from the sale of HD Supply in August 2007.
Home Depot sold HD Supply to three private equity firms for $8.5 billion, with the Home Depot retaining a 12.5% equity stake in the company.
Under the terms of the agreement, HD Supply will receive a payment of $22 million and other non-cash considerations.
"We are very pleased to have reached an agreement and to put this matter behind us," said Joe DeAngelo, HD Supply's Chief Executive Officer, "The Home Depot is a valued customer and minority investor of HD Supply, and we look forward to continuing our good relationship and to serve them."
In connection with its minority stake in HD Supply, The Home Depot recently announced that it would record a pre-tax charge of $163 million for a write-down of its investment in the distributor. The write-down reflects a lower valuation for its investment in HD Supply. This accounting adjustment does not impact HD Supply's operations, funding or access to capital, according to a press release.
HD Supply has more than 900 locations in North America.