NEW YORK (CNN/Money) - Discount retailer Kmart announced Friday it is shedding up to 24 of its stores to home improvement retailer Home Depot for about $365 million in cash.

Troy, Mich.-based Kmart (KMRT: Research, Estimates) did not specify the exact number of stores or their locations. The company also said in a statement that it would determine the final value of the deal within the next 60 days.

Kmart added that the stores are expected to be converted to Home Depot (HD: Research, Estimates) stores.

"We will take advantage of opportunities to create value that include the sale of existing stores, or the acquisition of new stores and businesses," Kmart CEO Julian Day said in a statement. "Some who follow Kmart have speculated solely on the real estate value of the company; however, the reality is that we're taking action on many different fronts simultaneously, all with the goal of making Kmart a great retail company once again."

"We are not surprised to hear of the sale of 24 Kmart units to Home Depot," Richard Hastings, retail analyst with Bernard Sands, said in a note Friday.

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"The emphasis at Kmart continues to be profits, not growth," he added. "By removing stores that are underperforming or that have relatively expensive, unattractive lease agreements in locations also deemed questionable to longer-term strategic goals, Kmart's management can further reduce expenses and balance sheet debt while increasing pre-tax profits.

"The additional cash on the balance sheet from the asset sales will put Kmart in a position to further reduce debt and possibly buyback more shares in a move that could boost share prices further," Hastings said. "At the same time, the big cash position will enable management to look at an attractive range of choices, including the possibility at some point in the future of a major acquisition."

Kmart shares closed a penny higher at $54.86 Thursday.