Home Depot to buy 24 Kmarts

TROY, MICH. — Kmart Holding Corporation had signed definitive agreements with The Home Depot, Inc. to sell up to 24 stores for a maximum purchase price of $365 million in cash. The exact number of stores, locations, and total purchase amount will be determined based upon the satisfaction of certain conditions to occur within the next 60 days, stated the companies.

Julian Day, president and CEO of Kmart, said, "For each of the past four quarters, Kmart has consistently delivered improved year-over-year profitability by focusing on the fundamental aspects of our business. Operationally, we've improved several areas including product design, buying, inventory management, distribution and the in-store environment. By the same token, we will take advantage of opportunities to create value that include the sale of existing stores, or the acquisition of new stores and businesses. Some who follow Kmart have speculated solely on the real estate value of the company; however, the reality is that we're taking action on many different fronts simultaneously, all with the goal of making Kmart a great retail company once again."

Assuming that the conditions for the transfer of the stores are satisfied, it is expected that such Kmart stores will be converted to Home Depot stores as quickly as possible after delivery to Home Depot.