The price, which is about $1.8 billion less than was originally agreed, was re-negotiated in regard to market conditions arising from the crisis in the US housing market.
The deal will see Home Depot purchase a 12.5 per cent equity interest of the business for a price of $325 million and will guarantee a $1 billion senior secured loan of Home Depot Supply.
Speaking to Forbes, chairman and chief executive of Home Depot, Frank Blake, said: "Despite the softness in the financing and residential construction markets, the terms of the HD Supply sale deliver shareholder value today and in the future as we will share in HD Supply's upside potential."
Home Depot believes that the deal will net the company about $7.9 billion in cash proceeds.
The equity companies involved in the purchase comprise affiliates of Bain Capital Partners, the Carlyle Group, and Clayton, Dubilier & Rice.
Mr Blake said the company is now focussing on the retail side of the business.