The Home Depot, Atlanta, announced that it has doubled its presence in Mexico by signing an agreement to acquire Del Norte, Juarez, Mexico, a four-store chain of home-improvement stores.
The financial terms of the transaction, which is subject to approval by the Mexican government, were not disclosed.
Bob Nardelli, chairman, president and chief executive officer of The Home Depot, said the company is acquiring these stores to capitalize on the Mexican economy, take advantage of new talent, and gain access to the Juarez, Mexico, and El Paso, Texas, metropolitan area.
In addition to acquiring Del Norte, construction has begun on a newly acquired site in Mexicali, and work will be underway soon on another in Tijuana. Both store locations are expected to open by the end of 2002. The company also said that additional construction sites are under consideration for development later this year.
Home Depot also said that Del Norte's chief executive officer, Eduardo Cantu, who has more than 20 years of experience in the home improvement industry, will join the Home Depot management team in Mexico. Del Norte's stores average 79,000 square feet and serve both professional and residential consumers.
Home Depot acquired Total HOME's four stores in 2001, which provided a profitable operation and base for expansion in the country. Total HOME operates three stores in Monterrey and one in Mexico City.
Del Norte is one of the largest home improvement retailers in Mexico.