Home Depot to Pay $22 Million to HD Supply

Atlanta HD Supply said Monday that it will receive a $22 million payment from home-improvement retailer Home Depot Inc. for adjustments related to its August 2007 sale.

HD Supply, a wholesale distribution company, was sold to Bain Capital, Carlyle Group and Clayton, Dubilier & Rice for $8.5 billion in 2007. Home Depot kept a 12.5% equity stake in the business.

The deal between the two companies also includes other non-cash considerations.

Home Depot recently said it will take a $163 million charge related to a write-down on its HD Supply stake, since the investment is now worth less than it was when initially purchased. HD Supply said the write-down does not effect its business.

HD Supply had a roughly $700 million cash balance at the end of 2008.