Transform Holdco LLC announced in a statement that they have entered into a definite merger agreement that will bring Sears Hometown and Outlet Stores, Inc. back into the fold in Q3, 2019.
Currently, Sears Hometown operates 491 Hometown stores and 126 Outlet stores located in 49 states, Puerto Rico and Bermuda. When combined, in terms of sales, the two stores are the third largest appliance retailer in the United States and generated $1.4 billion in net sales in 2018.
"We are excited to bring Sears Hometown, its associates and network of independent dealers and franchisees back into the Sears and Kmart family,” said Edward S. Lampert, Chairman of Transform in a statement. “Our investment demonstrates our commitment to growing Transform for the benefit of our members and customers, associates, vendors and communities across the country. While, initially, the companies will operate independently, we see many opportunities where we can partner to serve our customers better and enjoy efficiencies of scale once these businesses are under one roof."
The merger reunites Sears and Kmart with Sears Hometown, and accelerates Transform's strategy of growing its smaller store format into a multi-channel business to serve customers through a variety of shopping experiences. The Kenmore and DieHard brands will also help Transform to expand their footprint.