US discount retailer Kmart has announced it has finalised a deal to sell 18 stores to Home Depot for an aggregate purchase price of US$271m in cash.

Kmart said it expects sale proceeds of $259m, with respect to 17 of the stores, to have been released to Kmart by the completion of the current fiscal quarter, including the $54.6m received last quarter. Subject to the receipt of a third-party consent, Kmart said it expects to receive the remaining sale proceeds during the fourth quarter.

"We are pleased to announce the successful completion of this transaction. The stores we are retaining from the originally announced transaction have been operating profitably and better than plan for this year. We look forward to providing continued service to our customers at these locations," said president and CEO Julian C. Day.

Kmart said that nearly 230 employees, or 41% of the full-time and management employees affected by this transaction, will be offered opportunities within other Kmart locations.