Home Depot Acquires Its Way Into China

The Home Depot® recently joined with U.S. Commerce Secretary Carlos Gutierrez and Vice Minister Yi Xiaozhun of the Chinese Ministry of Commerce to announce it has signed an agreement to acquire China's first home improvement retailer The Home Way. The company says this transaction has received the necessary Chinese government regulatory approvals and is expected to close by the end of the year.

Home Depot says The Home Way provides the company with an immediate retail presence in China, with 12 stores in six cities, and supports a strategy to expand its business globally. It says the acquisition will help accelerate its understanding of consumers and retail operations in the Chinese home improvement market, which the company values at nearly $50 billion and says is 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, chairperson, president and chief executive officer of The Home Depot. "The Home Way is a strong brand that is already established as a value and price leader among Chinese consumers."

Home Depot entered Canada in 1994 and Mexico in 2001 through a combination of acquisitions and "organic growth" and, in late 2004, opened a business development office in China to gain consumer insights and evaluate marketplace strategies. It says approximately 70 percent of home improvement spending in China is for the completion of interior spaces of new homes.

www.homedepot.com