Home Depot To Acquire Mexico’s Total Home.

The Home Depot announced it has signed a definitive agreement to acquire for cash Total HOME, a four-store chain of home improvement stores in Mexico, from ALFA, S.A. de C.V., a conglomerate based in Monterrey, Mexico. Financial terms of the acquisition were not disclosed.

Incorporated in 1993, Total HOME is Mexico’s second largest home center retailer — three stores in Monterrey and one store in Mexico City. The acquisition is expected to be completed during the next five to six weeks after receipt of regulatory approvals.

“The acquisition of Total HOME gives us immediate and profitable entry into Mexico’s $12.5-billion home improvement market,” said Bob Nardelli, president and CEO of The Home Depot. “With the second largest economy in Latin America and some 23 million households, Mexico offers tremendous growth potential in all facets of the home improvement market.”

Moberg said Total HOME is attractive to Home Depot due to its successful track record and business model similarity to Home Depot. “We share the same operating philosophy — to offer customers the best in selection, price and service,” he explained.

Moberg also said that by integrating the cultures of Home Depot and Total HOME, there will be many benefits for both companies.

“We will share resources for merchandising and operations,” he explained. “There will be cross training among associates to ensure that the best practices of both companies are implemented. We also see many opportunities in the area of sourcing products.”

“We will seek to streamline supply chain management for our stores in the U.S. and Mexico,” Moberg said. “In addition, we expect to build and leverage relationships with Home Depot and Total HOME vendors to benefit our customers and store profitability.”

“We are very pleased that Total HOME is joining forces with Home Depot to gain greater share of the Mexico home improvement market,” said Ricardo Saldivar, president of Total HOME. “Our employees are excited about becoming part of the Home Depot organization, and we look forward to embracing the Home Depot culture and commitment to being the best in home improvement products and services.”

The addition of Mexico increases Home Depot’s presence internationally to four countries outside the United States — the other three being Canada (67 stores), Chile (5 stores) and Argentina (3 stores).