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July 25, 2008 12:10:54 PM CDT

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Home Depot Deal Renovated

Posted Aug 27, 07 5:37 AM CDT in US,  Business 

(Newser) – The sale of Home Depot's wholesale supply unit—threatened by the credit crisis —is going ahead after tense negotiations between Home Depot, private equity firms buying the company and banks providing the financing. Home Depot slashed its price 18% to $8.5 billion and guaranteed some of the loans to close the deal, the Wall Street Journal reports.     

Wall Street is watching this deal closely because it's the first major buyout impacted by the credit crisis. There are another $400 billion worth of other deals  working their way through the system. Any or all of those may be the focus of some testy renegotiations.

Source Wall Street Journal

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    Aug 24, 07 7:10 AM CDT
    Banks Might Derail Home Depot Deal The pending sale of part of Home Depot took an ugly turn last night as three banks and three private equity firms entered into a showdown over financing. Home Depot dropped its asking price by over $1 billion, but the banks involved—JPMorgan Chase, Lehman Brothers and Merrill Lynch—have threatened to withdraw from a deal that may become the  first casualty of the credit crunch. More »

Home Depot reduced the asking price for their wholesale supply unit and guaranteed billions of dollars worth of loans to keep the deal alive.
An HD Supply wholesale warehouse. Home Depot is selling their wholesale unit for a recued price of %8.5 billion.
A clerk scans out a purchase at a Home Depot store. Home Depot dropped the price of its wholesale unit to guarantee the sale went through.   (Associated Press)
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credit crisis  • private equity  • Merrill Lynch  • JPMorgan Chase  • buyout  • Home Depot  • Bain Capital  • LBOs  • Lehman Brothers Holdings


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