Kmart Finalizes Transaction with The Home Depot
Aug 23, 2004
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Appliance retailers Kmart and The Home Depot announced that the final transaction regarding Home Depot's purchase of Kmart stores is for the sale of 18 stores for an aggregate purchase price of U.S. $271 million in cash.
It is currently anticipated that sale proceeds totaling $259 million with respect to 17 of the stores will have been released from escrow to Kmart by the completion of the current fiscal quarter. This figure includes the $54.6 million received last quarter. Subject to the receipt of a third-party consent, it is anticipated that Kmart will receive the remaining sale proceeds during the fourth quarter.
As previously reported, Kmart and Home Depot entered into a revised agreement that provided 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.
Julian C. Day, president and CEO of Kmart, said, "We are pleased to announce the successful completion of this transaction. The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year. We look forward to providing continued service to our customers at these locations."
Kmart will also continue an employee retention program designed to promote and retain high-performing associates. Nearly 230 associates of the full-time and management associates affected by the transaction will be offered opportunities within other Kmart locations. In addition, Home Depot anticipates that it will be employing approximately 200 associates per store.
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