Home Depot to buy chain of Mexican home centers

ATLANTA (AP) — The Home Depot Inc. said Thursday it will buy Mexico's Home Mart and its 20 stores. Terms were not disclosed.

The purchase will expand Atlanta-based Home Depot's presence in Mexico to 39 stores. Home Depot is the world's largest home improvement retailer; Home Mart is Mexico's second-largest home improvement retailer.

"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 combined operation as president of Home Depot Mexico.

With the purchase, Home Depot also announced it is raising its new store opening guidance from 175 stores to 185 new stores this year. The new guidance reflects the 20 stores added through the Home Mart acquisition and the company's decision to move 10 stores previously scheduled to open in 2004 to 2005.

Home Mart was founded in 1993. Its stores will be converted to The Home Depot brand after a transition period and training for new associates.

Home Depot shares rose 19 cents to close at $33.72 on the New York Stock Exchange.