Monday, March 28, 2005

It’s Official: Kmart + Sears

Shareholders agree on merger, transaction is completed

Kmart Holding Corp. (Troy, Mich.) and Sears, Roebuck and Co. (Hoffman Estates, Ill.) have announced the completion of the merger transaction first announced on Nov. 17, 2004. The two retailing giants will combine into a new retail company named Sears Holdings Corp.

It will be the nation’s third-largest retailer with approximately $55 billion in annual revenues and a national footprint of nearly 3500 retail stores in the United States (including 2350 full-line and off-mall stores, and 1100 specialty retail stores). It will be headquartered in Hoffman Estates, but each party will continue to operate separately under their respective brand names and Kmart will continue to have a presence in Michigan.

Starting March 28, 2005, Sears Holdings stock will be listed for trading on the Nasdaq National Market under the ticker symbol “SHLD.”

Edward Lampert, chairman of Sears Holdings, said, “This new enterprise will seek to leverage the combined strengths of Sears and Kmart to create greater long-term value than either could have generated on a stand-alone basis. Sears Holdings plans to offer customers a new, more compelling shopping experience with a differentiated and expanded product range. We believe Sears Holdings has the potential to be a great company with a truly great retail business.”

Alan Lacy, vice chairman and ceo of the new entity, said, “This combination accelerates Sears’ off-mall strategy and gives customers a complete, convenient shopping solution. Shoppers will have greater access to the leading proprietary brands of both Kmart and Sears, along with financial services products and the industry’s leading service organization. With a national store base of nearly 3500 stores, we expect to be able to leverage our scale and strategically grow the business.”

The combined new company will include the best of both brands: Sears’ strength as a home appliance retailer and a leader in tools, lawn and garden, home electronics and automotive repair and maintenance and the combined key proprietary brands including Kenmore, Craftsman and DieHard, Lands’ End, Jaclyn Smith, Joe Boxer, Apostrophe, Covington and Martha Stewart Everyday.

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