Home Depot, Inc. has acquired Mexico's second-largest home-improvement retailer, Home Mart, for an undisclosed amount.
"We anticipate a smooth transition and believe the combination of our two companies will benefit consumers in many ways," said Ricardo Saldivar, who will lead the operation as president of Home Depot Mexico, according to the Atlanta Journal-Constitution.
Home Depot has operated its own stores in Mexico since 2001. With this new acquisition, the store will gain 20 outlets, expanding its presence in Mexico to 39 stores. It will postpone 10 store openings in Mexico until 2005.
New locations will be in Mexico City and other cities that will give the company a presence in seven other regional markets for the first time, according to Investor's Business Daily.
Home Mart was founded in 1993. Its stores, which average 69,000 sq.ft., will be converted to the Home Depot brand after a transition period and training new associates.
With the additional stores acquired from Home Mart, Home Depot raised its expected number of new store openings this year from 175 to 185. Home Depot estimates Mexico's home-improvement retail market to be worth nearly $15 billion a year.