Appliance retailer The Home Depot announced it has signed a definitive agreement to acquire Home Mart, a large Mexican home improvement retailer. When the acquisition is completed, Home Depot will acquire 20 Home Mart locations, bringing its total store count in Mexico to 39 stores.
According to The Home Depot, Home Mart will add significant new locations for Home Depot, including prominence in Mexico City with a store base in seven new markets, and enhance its position in a nearly U.S. $15 billion market. The transaction is subject to approval by the Mexican regulatory authorities and customary closing conditions and financial terms were not disclosed.
"We look forward to offering product innovations, compelling store presentations, and exceptional service to even more customers in Mexico," said Frank Blake, executive vice president of Business Development and Corporate Operations. "This acquisition builds on our growth strategy of enhancing the core, extending the business and expanding the market."
Home Mart was established in 1993. Its stores, which average 69,000 sq ft, will convert to The Home Depot brand following a transition period and training for new associates. Ricardo Saldivar will lead the combined operation as president of Home Depot Mexico.
Home Depot also said it is raising its new store opening guidance from 175 stores to 185 new stores this year, including the 20 stores added through the Home Mart acquisition and reflecting the company's decision to move 10 stores previously scheduled to open in 2004 into 2005.
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