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GlobeSt.com UPDATE: Kmart, Sears Close 50-Store, $576M Deal

TROY, MI-Kmart is selling 50 stores to Hoffman Estates, IL-based Sears Roebuck & Co. for $575.9 million a month after shedding 18 stores in a $271-million deal with the Home Depot Inc.

By Dan Heaton | Updated on September 29, 2004

TROY, MI-Kmart and Sears have closed a deal in which Kmart will sell 50 stores to Sears for $575.9 million. Locally based Kmart Holding Corp. says it will receive $172 million in cash from Hoffman Estates, IL-based Sears Roebuck & Co. in the current quarter with the remainder to be paid as Sears takes possession of the stores, no later than April.

In early September, Kmart and Sears entered into an agreement that provided for the sale of up to 51 stores for up to $589.7 million in cash. Kmart will continue to operate the stores sold to Sears until March or April 2005, with the exception of the West Palm Beach, FL store that will transfer this fall.

This is the second major property transaction in as many months for Kmart. Last month, Kmart sold 18 stores to the Home Depot Inc. for $271 million.

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