Chinese Home Improvement Retailer Provides The Home Depot With Immediate
Presence in Fast-Growing Global Market
BEIJING and ATLANTA, Dec. 13 /Xinhua-PRNewswire/ -- The Home Depot(R),
the world’s largest home improvement retailer, today joined with U.S.
Commerce Secretary Carlos Gutierrez and Vice Minister Yi Xiaozhun of the
Chinese Ministry of Commerce to announce it 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.
(Logo : http://www.newscom.com/cgi-bin/prnh/20061213/NYW052LOGO )
To view the Multimedia News Release, go to:
http://www.prnewswire.com/mnr/homedepot/26373/
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."
Expansion in China is an important area of growth for The Home Depot. The
Company entered Canada in 1994 and Mexico in 2001 through a combination of
acquisitions and organic growth and today holds the number one position in
both markets. In late 2004, The Home Depot opened a business development
office in China to gain consumer insights and evaluate numerous marketplace
strategies. The Company believes that The Home Way provides the right entry
platform upon which to build a business model that meets the needs of Chinese
home improvement customers, while delivering profitable and sustainable
growth. Approximately 70 percent of home improvement spending in China is for
the completion of interior space in new homes, a solid growth opportunity
given The Home Depot’s strength in merchandise and services geared to
finishing out a home.
"We are pleased to have The Home Way’s management team as our partners
as we enter China’s retail market. The combination of our two companies will
benefit Chinese consumers in many ways," said Annette Verschuren, president,
The Home Depot Asia/Canada and leader of the Company’s retail expansion into
China. "As we grow the business internationally, we provide great employment
opportunities for our associates in each market, unprecedented value and
service for our customers, and tremendous growth opportunities for our
vendors."
"The Home Depot and The Home Way share the desire to bring quality home
improvement products and services to Chinese customers. We look forward to
this exciting new chapter that our two companies will write together," said
Du Sha, chairman and CEO, The Home Way. "We believe that we can continue to
enhance our customers’ experience as we benefit from The Home Depot’s
expertise in retail, sourcing and supply chain operations."
"We have a high regard for Mr. Du and the culture he helped establish at
The Home Way. His entrepreneurship and leadership will be critical as we
further develop our relationships and presence in China," said Verschuren.
About Home Way
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.
About The Home Depot
The Home Depot(R) is the world’s largest home improvement specialty
retailer, with 2,122 retail stores in all 50 states, the District of
Columbia, Puerto Rico, U.S. Virgin Islands, 10 Canadian provinces and Mexico.
Through its HD Supply(SM) businesses, The Home Depot is also one of the
largest diversified wholesale distributors in the United States, with nearly
1,000 locations in the United States and Canada offering products and
services for building, improving and maintaining homes, businesses and
municipal infrastructures. In fiscal 2005, The Home Depot had sales of $81.5
billion and earnings of $5.8 billion. The Company employs approximately
355,000 associates and has been recognized by FORTUNE magazine as the No. 1
Most Admired Specialty Retailer and the No. 13 Most Admired Corporation in
America for 2006. The Home Depot’s stock is traded on the New York Stock
Exchange (NYSE: HD) and is included in the Dow Jones industrial average and
Standard & Poor’s 500 index.
HDG
NOTE TO EDITORS:
-- This announcement is being made simultaneously in Atlanta and Bejing.
-- Photos and new logo available.
-- B-roll available on satellite at the following coordinates:
-- Transponder: SBS6-03
-- Band: Ku
-- Downlink Frequency: 11774 MHz (H)
-- Audio feed on 6.2 and 6.8 MHZ.
-- Feed times: 5:30 - 6:00AM, 7:00 - 7:30AM, 12:00 - 12:30PM ET
