As previously announced, Kmart and The Home Depot had initially entered into an agreement that provided for the sale of up to 24 Kmart stores for a purchase price of up to U.S. $365 million subject to the satisfaction of various conditions.
The companies have now revised the transaction to provide for the sale of no fewer than 13 stores for $173 million in cash, and up to 19 stores for $288.5 million in cash.
Additionally, Kmart has been granted an option to sell certain stores, which if exercised by Kmart, would increase the minimum number of stores sold to 15 for $214 million. The revision of the transaction was the result of certain closing conditions not being satisfied with respect to certain stores.
The sale of 4 stores has already been completed and $59 million have been received from The Home Depot. The sale of an additional nine stores will be completed and cash proceeds received into escrow, with funds to be released to Kmart upon the transfer of occupancy.
Kmart is commencing store-closing sales on those stores sold to The Home Depot promptly upon the consummation of the property sales, and will receive proceeds from the store inventory and fixtures in addition to the sale proceeds from The Home Depot referred to above.
Back to Breaking News