Hoffman Estates, Ill., Kmart is buying Sears in an $11 billion deal.
The deal calls for Kmart Holding Corp. and Sears, Roebuck and Co. to merge into a single retail company named Sears Holdings Corp. The new Sears will be the nation's third-largest retailer, with approximately $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores.
Sears Holdings will be headquartered in Hoffman Estates, Ill., and Kmart will continue to have a significant presence in Troy, Mich., the company said. The new company pointed to the benefits from improved operational efficiency in areas such as procurement, marketing, information technology and supply chain management.
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. Lacy will be vice chairman and CEO of Sears Holdings; Lewis will be president of Sears Holdings and CEO of Kmart and Sears Retail.
Glenn R. Richter, currently executive VP and CFO of Sears, Roebuck, will be executive VP and CFO 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.