New York — Kmart announced today it will buy Sears Roebuck & Co. in an $11 billion deal.
The new company will have sales totaling $55 million through 3,500 stores.
In a written statement the companies reported that Edward S. Lampert, chairman of Kmart, will be the chairman of Sears Holdings. He will be joined in an office of the chairman by Alan J. Lacy, current chairman and CEO of Sears, and Aylwin B. Lewis, current president and CEO of Kmart. Mr. Lacy will be vice chairman and CEO of Sears Holdings; Mr. Lewis will be president of Sears Holdings and CEO of Kmart and Sears Retail. Glenn R. Richter, currently executive VP and chief financial officer of Sears Roebuck, will be executive VP and chief financial officer of Sears Holdings. William C. Crowley, currently senior VP, finance, of Kmart and a Kmart board member will be executive VP, finance and integration of Sears Holdings.
Lacy said, "The combination will greatly strengthen both the Sears and Kmart franchises by accelerating the Sears off-mall growth strategy and enhancing the brand portfolio of both companies. This will clearly be a win for both companies' customers while significantly enhancing value for all shareholders. We will have a total combined store base of nearly 3,500 stores and the leading service organization in the industry capable of a major expansion to serve the needs of existing Kmart and Sears’ customers.
"Kmart has made great progress over the past 18 months to strengthen the organization in terms of profitability and product offerings,” said Lewis, “We believe the combination of Kmart and Sears will create a true leader in the retail industry — both as a key part of local communities and as a national presence. Together, we will further enhance our capabilities to better serve customers by improving in-store execution and ultimately transforming the customer's in-store experience."