HD Supply Sale Being Renegotiated
HD Supply Sale Being Renegotiated
Jason Sandefur
Just weeks after winning deal approval from the Federal Trade Commission, Home Depot is having to renegotiate its sale of HD Supply, the wholesale distribution division that included three fastener companies, to three private equity firms. The deal, which was worth $10.3 billion when first agreed to in June, includes Crown Bolt, Brampton Fastener (Brafasco) and Western Fasteners.
Bain Capital Partners, Carlyle Group and Clayton, Dubilier & Rice could pay less for HD Supply, thanks to a tightening credit market.
“The unit sale renegotiation is the latest sign that difficulties in raising debt to fund takeovers is starting to crimp deal prices and prompt buyers to seek to amend previously agreed deals,” according to Reuters.
HD Supply has nearly 1,000 locations in the U.S and Canada with more than 26,000 employees. The division sells to the infrastructure, construction and maintenance supply industries. HD Supply reported revenue of $12.1 billion in 2006, about 13% of overall Home Depot sales. The company launched the supply business in 1997 and expanded it by paying $3.2 billion for Hughes Supply in 2006. Web: hdsupplyinc.com and homedepot.com �2007 FastenerNews.com
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