Atlanta, GA, May 13--Home Depot today announced it has signed a definitive agreement to acquire Home Mart, the second largest Mexican home improvement retailer. The transaction is subject to approval by the Mexican regulatory authorities and customary closing conditions; financial terms were not disclosed. When the acquisition is completed, Home Depot will acquire 20 Home Mart locations, bringing its total store count in Mexico to 39 stores.
Home Mart will add significant new locations for Home Depot, including prominence in Mexico City and a store base in seven new markets, and enhance its position in a nearly $15 billion market. "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 square feet, serve customers in the home improvement industry. Home Mart stores 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.
In June 2001, Home Depot entered the Mexican market through the acquisition of Total HOME. The Total HOME stores in Monterrey and Mexico City were converted to Home Depot stores in March 2002. In 2002, the company acquired Del Norte, a four-store home improvement chain formerly based in Ciudad Juarez. Home Depot has opened a total of 11 new stores since 2002 in Mexicali, Culiacan, San Luis Potosi, Monterrey, Tijuana, Leon, Chihuahua, Guadalajara, greater Mexico City (2) and Hermosillo.
"We anticipate a smooth transition and believe the combination of our two companies will benefit consumers in many ways," said Ricardo Saldivar. "Everyone wants to be part of the winning Home Depot team as we grow the business and continue to provide great employment opportunities for our associates and unprecedented values and service for our customers in Mexico, as well as a tremendous growth opportunity for our vendors."
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.
