Home Depot exec leaves |
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Fri, 31 Aug 2007 23:22
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ATLANTA (AP) - The Home Depot Inc. said Friday that its chief operating officer, who oversaw the company's wholesale distribution business, has resigned following the sale of the unit to a group of private equity firms.Atlanta-based Home Depot, the world's largest home improvement store chain, said in a regulatory filing that Joseph DeAngelo resigned from the company on Thursday.DeAngelo will continue to work with HD Supply, which Home Depot sold for $8.5 billion to three private equity firms, Home Depot spokeswoman Paula Drake said.The sale was completed on Thursday.The sale price was reduced from the $10.3 billion that the buyers had initially agreed to pay for HD Supply in June.Home Depot agreed to reduce its price for HD Supply amid turmoil in the financial markets.The completed agreement calls for Home Depot to retain a 12.5 percent stake in HD Supply and to guarantee $1 billion of debt the buyers took on to complete the transaction.Home Depot said earlier this week that it would pay $325 million for the equity stake.Home Depot has said that it would use the proceeds from the sale of HD Supply to partly fund a buyback of up to $22.5 billion in company shares.A tender offer to purchase up to 250 million shares of company stock at a price range of $37 a share to $42 expired Friday. The results of the tender were not expected to be released until early next week.In Friday's Securities and Exchange Commission filing, Home Depot said it will use all or a substantial portion of the proceeds from the HD Supply sale to fund the tender offer. As a result, Home Depot decided to reduce a $10 billion credit line that it set up in connection with the tender offer to $2 billion, the filing said.Home Depot operates 2,200 stores in the United States, Canada, Mexico and China. HD Supply serves contractors, homebuilders and other business customers.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Home Depot completes HD Supply sale 