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Home Depot may cut price of a unit

Home improvement retailer The Home Depot Inc. said Thursday it may change the terms and financing of its agreement for the sale of its supply unit, which could result in a drop in the $10.33 billion sale price.
/ Source: The Associated Press

Home improvement retailer The Home Depot Inc. said Thursday it may change the terms and financing of its agreement for the sale of its supply unit, which could result in a drop in the $10.33 billion sale price.

Home Depot said it is now in talks with affiliates of Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice to change the agreement to sell HD Supply, which serves contractors, homebuilders and other business customers.

The private-equity groups agreed to buy the business in June.

The company also said it will lower the price of its modified Dutch tender offer to between $37 and $42 per share from between $39 and $44. In July, Home Depot announced the tender offer to buy up to 250 million shares of its stock.

Home Depot said the tender offer price change was due to “current financial market conditions.”

The company also extended the expiration date to Aug. 31.

As of Aug. 8, the total number of shares tendered was about 3.1 million.