| BEIJING and ATLANTA -- The Home Depot has signed a definitive agreement to acquire The Home Way, China's first home improvement retailer. The transaction has received the necessary Chinese government regulatory approvals and is expected to close by the end of the year. Terms of the deal were not disclosed.
As part of The Home Depot's strategy to expand its business globally, The Home Way provides the Company with an immediate retail presence in China with 12 stores in six cities. Together with The Home Way's knowledgeable, established management team, The Home Depot will accelerate its understanding of consumers and retail operations in the Chinese home improvement market, which today is valued at nearly $50 billion and has been growing at a compounded annual rate of 20 percent.
"This acquisition provides us with a great point of entry in one of the world's largest and fastest-growing home improvement markets," said Bob Nardelli, chairman, president & CEO, The Home Depot. "The Home Way is a strong brand that is already established as a value and price leader among Chinese consumers. We welcome The Home Way's leadership and associates into The Home Depot family, and we look forward to the opportunity to serve Chinese consumers. In addition, we are grateful for the support of this venture by local and national Chinese government officials."
Founded in 1996 by Du Sha, its chairman and CEO, The Home Way is headquartered in Tianjin, one of China's largest cities and a primary development zone for the government, located 85 miles southeast of Beijing. The Home Way was the first "big box" home improvement retail chain in China, and its stores average 90,000 square feet of selling space. The Home Way employs approximately 3,000 associates across 12 stores in six cities in China, including Tianjin, Beijing, Xi'an, Qingdao, Shenyang and Zhengzhou.
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