P.M. BRIEFING : K mart to Buy Into OfficeMax

K mart Corp., which recently announced plans to revamp its entire discount store chain over the next few years, today said that it has agreed to buy a 22% stake in office supply superstore chain OfficeMax for undisclosed terms.

OfficeMax, a privately held chain based in Cleveland, also agreed to acquire the Office Square business of a K mart subsidiary.

Under the cash deal, K mart also has the right to boost its stake in OfficeMax.

“Large size office supply stores represent an exciting growth opportunity for K mart. . . . These superstores are expected to capture an increasing share of the growing office supply and equipment market in the years ahead,” K mart Chairman Joseph Antonini said.

OfficeMax President Michael Feuer said the cash infusion and the five Office Square stores it will acquire from K mart will allow OfficeMax to continue its rapid expansion.