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Home Depot to buy Chinese The Home Way

Home Depot, the American home equipment giant, based in Atlanta, has signed an agreement to buy the Chinese home equipment chain, the Home Way. The price of the deal was not disclosed but earlier estimates estimated the deal to be worth approximately $100 million. The Home Way is headquartered in Tiangin. The chain has 12 chapters in 6 cities and a market share estimated at $50 billion, as well as 3,000 employees. Home Depot said that the Home Way has been growing at an annual rate of 20%. The Home Way was a privately owned company. Th owners plan to use the money from the sale to pay off debts to suppliers.

"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, who is the chairman, president and CEO of 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."

Home Depot is competing fro the Chinese market against the Swedish, IKEA, and the English, Q & B, it currently has 60 stores in China and plans to open another 100 by 2010. In January this year, Home Depot announced it plans to cut its expansion plans in the United States. The store plans to open only about 500 stores by 2010, nearly half of the number of stores opened in the past 5 years.