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Home Depot Deal Renovated

Price for wholesale unit slashed

Posted Aug 27, 2007 5:37 AM CDT

(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.

Home Depot reduced the asking price for their wholesale supply unit and guaranteed billions of dollars worth of loans to keep the deal alive.

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)

An HD Supply wholesale warehouse. Home Depot is selling their wholesale unit for a recued price of %8.5 billion.

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Home Depot Deal Renovated

Price for wholesale unit slashed

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OTHER STORIES ON OUR RADAR

Home Depot Buyout

private equity • Bain Capital • LBOs • Merrill Lynch • Lehman Brothers • Home Depot • buyout • credit crisis • HD Supply • Clayton Dubilier and Rice • JPMorgan Chase

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Banks Might Derail Home Depot Deal

Private equity threatens lawsuit as financing dries up

Romney's Bain Had Loads of Profit, Bankruptcies

Wall Street Journal says Romney's firm didn't always turn things around

Credit Crisis Spells Disaster for Private Equity Firms

Debt tightens as profits fall for many acquired companies

Crisis Leaves Goldman Nearly Unruffled

Being ahead of curve, having friends in high places pays dividends

Lehman's Asset Management Arm Sold on Cheap for $2B

Prestigious Neuberger Berman goes to 2 private equity firms

About Us

Site

Newser By Users

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