ATLANTA, Sept. 10 /CNW/ -- The Home Depot(R), the world's largest home
improvement retailer, today announced the final results of its modified "Dutch
Auction" tender offer, which expired at 5 p.m. on Friday, August 31, 2007.
The Home Depot accepted for purchase 289,331,314 shares of its common
stock at a price of $37.00 per share, for a total cost of $10.7 billion,
excluding fees and expenses related to the offer. These shares represent 14.6
percent of the shares outstanding on August 31.
Based on the depositary's final count, a total of 289,331,314 shares were
validly tendered at a price of $37.00 per share. Accordingly, there will be
no proration of tenders received in the offer. The shares purchased in the
offer include the 250,000,000 shares the Company initially offered to purchase
and 39,331,314 additional shares that the Company elected to purchase pursuant
to the terms of its offer.
Computershare will promptly pay for the shares accepted for purchase and
will promptly return all shares tendered and not accepted for purchase. With
completion of the tender offer, The Home Depot now has approximately 1.69
billion shares outstanding.
"We are pleased to successfully complete the tender offer, which brings
us almost halfway to fulfilling our $22.5 billion recapitalization plan," said
Frank Blake, chairman and CEO. "We continue to evaluate financial market
conditions and will execute the rest of the plan as soon as practicable."
To complete the $22.5 billion recapitalization plan, the Company may
repurchase additional shares in the form of open market purchases, accelerated
share repurchases and/or additional tender offers, the details of which will
be announced at a later time. Rule 13e-4(f) under the Securities Exchange Act
of 1934, as amended, prohibits the Company from purchasing any shares, other
than in the tender offer, until at least ten business days following
expiration of the tender offer.
Shareholders and investors who have questions or need information about
the tender offer may contact the information agent, D.F. King & Co., Inc., at
In connection with this offer, Computershare, Inc. served as depositary,
Lehman Brothers and Merrill Lynch as dealer managers and King & Spalding as
Updated EPS Guidance
Prior to the tender offer, the Company's guidance for fiscal 2007 diluted
earnings per share from continuing operations was a decline of 12-15 percent
from fiscal 2006. Having completed the tender offer, the Company's updated
guidance for diluted earnings per share from continuing operations is a
decline of 7-9 percent for fiscal 2007. For the purpose of computing diluted
earnings per share, the Company projects that outstanding shares will be
reduced by approximately 165 million and 290 million shares in the third and
fourth quarters of fiscal 2007, respectively.
The fiscal 2007 earnings per share guidance reflects 52 weeks and does
not include the impact of the 53rd week. The Company will have 53 weeks of
operating results in its fiscal 2007 financial results. The Company projects
that the 53rd week will add approximately three cents to its consolidated
earnings per share guidance for fiscal 2007.
The Home Depot(R) is the world's largest home improvement specialty
retailer, with 2,207 retail stores in all 50 states, the District of Columbia,
Puerto Rico, U.S. Virgin Islands, 10 Canadian provinces, Mexico and China. In
fiscal 2006, The Home Depot had sales from continuing operations of $79.0
billion and earnings from continuing operations of $5.3 billion. The Company
employs approximately 350,000 associates. 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. HDE
Certain statements contained herein, including any statements related to
the recapitalization plan and projected financial results, constitute
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. These statements are based on currently available
information and are based on our current expectations and projections about
future events. Undue reliance should not be placed on such forward-looking
statements as they speak only as of the date hereof, and we undertake no
obligation to update these statements to reflect subsequent events or
circumstances except as may be required by law. Additional information
regarding other risks and uncertainties is contained in our periodic filings
with the SEC, including our Annual Report on Form 10-K for the fiscal year
ended January 28, 2007.
For further information:
For further information: Financial Community: Diane Dayhoff, Sr. Vice
President - Investor Relations, +1-770-384-2666, firstname.lastname@example.org,
News Media: Paula Drake, Sr. Manager - Corporate Communications,
+1-941-488-1289, email@example.com, both of The Home Depot Web Site: