HD Supply and The Home Depot(R) Reach Agreement on Working Capital Adjustment

ATLANTA, Feb. 2 /PRNewswire/ -- HD Supply, one of the largest diversified
and wholesale distributors in the infrastructure and energy, maintenance,
repair and improvement and specialty construction markets, announced today
that it has reached an agreement with The Home Depot related to post-closing
purchase price adjustments resulting from the sale of HD Supply in August
2007.
HD Supply was sold in 2007 to three of the world's leading private equity
firms: Bain Capital, The Carlyle Group and Clayton, Dubilier and Rice (CD&R)
for $8.5 billion, with The Home Depot retaining a 12.5% equity stake in the
Company.
Under the terms of the agreement, HD Supply will receive a payment of $22
million and other non-cash consideration.
"We are very pleased to have reached an agreement and to put this matter
behind us," said Joe DeAngelo, HD Supply's Chief Executive Officer, "The Home
Depot is a valued customer and minority investor of HD Supply, and we look
forward to continuing our good relationship and to serve them."
In connection with its minority stake in HD Supply, The Home Depot
recently announced that it would record a pre-tax charge of $163 million for a
write-down of its investment in the Company. The write-down reflects a lower
valuation for its investment in HD Supply and is consistent with the decrease
in the overall market since 2007. This accounting adjustment does not, in any
way, impact HD Supply's operations, funding or access to capital.
HD Supply has a large customer base in highly diversified end markets, and
holds market leadership positions in most of its businesses. The Company
generates cash in excess of its operating needs, and has ample liquidity to
fund its current operations, as well as long-term growth initiatives. Its
solid capital structure is comprised of a combination of secured bank debt,
unsecured notes, internally generated funds, and a cash balance of
approximately $700 million at year end, available for operating and investing
activities.
Reflective of HD Supply's size, financial strength and creditworthiness,
Dun & Bradstreet has assigned HD Supply a credit rating 5A2, the second
highest rating possible.
Jim Berges, Operating Partner at CD&R and HD Supply's Chairman of the
Board stated, "Despite the unprecedented market conditions, and in particular,
the slowdown in the construction industry, the financial sponsors, Bain
Capital, The Carlyle Group and CD&R, are fully committed to our investment in
HD Supply. We are pleased with how the HD Supply associates have responded to
the market, taking the appropriate cost actions, but never losing focus on the
customers, which has enabled them to maintain profitability and generate cash
even in these very challenging times."
About HD Supply
HD Supply (www.hdsupply.com) is a leading, privately held, wholesale
distribution company, providing a broad range of products and services to
professional customers in the infrastructure & energy, maintenance, repair &
improvement and specialty construction markets. With a diverse portfolio of
market-leading businesses, HD Supply is one of the largest diversified
wholesale distributors in North America, with nearly 900 locations.
SOURCE HD Supply

Erica Crosling, Director, Public Relations & Community Affairs of HD Supply,
+1-770-852-9079, erica.crosling@hdsupply.com