Atlanta based Home Depot reported on Wednesday that it plans to buy "The Home Way" and estabish a retail presence in China. They expect the deal to close by the end of 2006 and it has already been approved by the Chinese government. Near the end of 2004, Home Depot had opened a business development office in China to evaluate marketplace strategies and gain consumer insights.
The Home Way is a Chinese home improvement retailer with 12 stores located in 6 cities and around 3,000 employees. Get this: the Chinese home improvement market has been growing at a compounded annual rate of 20% and is valued at $50 billion.
The chairman, president and CEO of Home Depot Bob Nardelli said: "This acquisition provides us with a great point of entry in one of the world's largest and fastest-growing home improvement markets"...."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 stock closed at $39.97 yesterday.
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