The 2020 Mid-Year Economic Update_long

Report: No Agreement Yet in HD Supply Negotiation

The Financial Times has reported that the buyers of HD Supply want a more than $1 billion price cut to the agreed-upon $10.3 billion purchase price. The parties recently moved the closing date for the sale by Home Depot&nbsp ; back to Thursday, Aug. 23 -tomorrow.
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The paper reported that one market investor expects the new price could be closer to $8.5 billion, a sentiment echoed earlier this month by industry analysts.
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At the original price of $10.3 billion, the buyers would have paid 10X-12X EBITDA. Tightening credit markets forced the deal-makers back to the table.
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The buyers would have to pay a $310 million break-up fee if they decide to walk away from the deal, FT said.
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Home ...

The Financial Times has reported that the buyers of HD Supply want a more than $1 billion price cut to the agreed-upon $10.3 billion purchase price. The parties recently moved the closing date for the sale by Home Depot&nbsp ; back to Thursday, Aug. 23 -tomorrow.
&nbsp ;
The paper reported that one market investor expects the new price could be closer to $8.5 billion, a sentiment echoed earlier this month by industry analysts.
&nbsp ;
At the original price of $10.3 billion, the buyers would have paid 10X-12X EBITDA. Tightening credit markets forced the deal-makers back to the table.
&nbsp ;
The buyers would have to pay a $310 million break-up fee if they decide to walk away from the deal, FT said.
&nbsp ;
Home Depot announced at the end of June that it had agreed to sell its $12 billion wholesale business to a trio of private equity firms Bain Capital, The Carlyle Group and Clayton, Dubilier & Rice for $10.3 billion. The firms are splitting the investment equally.


More on M & A valuation trends can be found in the MDM Special Report: Distribution M & A 2007 Update. Or check out the CD from our latest M & A audio conference – Distribution M & A 2007 Update: More Buyers, New Drivers in U.S & Overseas

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