Home Depot Denies Acquisition Rumors

Home Depot, Atlanta, says it has no interest in being bought out despite reports that surfaced earlier this month that it could be acquired for approximately $100 billion by two private equity firms, Kohlberg Kravis Roberts & Co. (KKR) and Texas Pacific Group.

Reiterating comments made on Dec. 1 by Robert Nardelli, Home Depot’s chairman, president and CEO, Home Depot said in a filing with the U.S. Securities and Exchange Commission that its board of directors unanimously supports the company’s management team and its plan to continue enhancing value for all shareholders through the execution of its current strategy. The SEC filing said, “The company has had no discussion about a potential leveraged buyout or recapitalization.”

Home Depot has been an active acquirer through its HD Supply platform. The nation’s No. 1 home retailer made a big splash in the electrical industry this year when it bought Hughes Supply Inc., Orlando, in March 2006.

The company also charged into the fast-growing Phoenix metropolitan market this past summer when it announced plans to acquire Edson Electric Supply Inc., the largest independently owned electrical distributor based in the Phoenix metropolitan area. Edson Electric operates 11 locations throughout Arizona.

Home Depot Supply aspires to be a $23 billion to $28 billion player in the distribution market by 2010.