The Home Depot®, the world’s largest home improvement retailer, this week 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.
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. Home Depot knows what it is doing. In the deal it acquired The Home Way’s knowledgeable, established management team as well as the stores and inventory.
This way HD doesn’t have to start at the bottom of the knowledge chain in a difficult country, China. 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.