In one of the biggest deals the independent home improvement industry has seen in decades, Do it Best has announced its bid to acquire substantially all assets from True Value, which filed for Chapter 11 bankruptcy under private equity ownership.
The proposed acquisition, supported unanimously by the Do it Best Board of Directors, would mark a significant moment in the history of the independent home improvement industry if consummated, as it would create a worldwide store network exceeding 8,000 locations in the U.S. and more than 50 countries around the world.
“After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future,” says Chris Kempa, True Value’s CEO. “We believe that entering the process with an agreed offer from Do it Best, who has a similar decades-long history in the home improvement space and also operates with a focus on supporting members and helping them grow, is the most beneficial next step for True Value and our associates, customers and vendor partners. We thank these valued stakeholders for their continued loyalty as we work to secure a stronger future for True Value.”
This proposed acquisition aligns with Do it Best’s long-standing commitment to championing independent home improvement store owners through its proactive distribution network, broad selection of brand name products and extensive menu of marketing service, says Dan Starr, Do it Best president and CEO. If Do it Best is successful in its bid for True Value assets, the acquisition would further Do it Best’s mission to serve even more independent entrepreneurs through an expanded market presence and the operational excellence that Do it Best member-owners have enjoyed for 80 years.
“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world,” Starr says. “Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
While maintaining its industry-leading level of support to its member-owners, this acquisition would present an opportunity for Do it Best to build upon True Value’s iconic brand, allowing current stores to maintain their independence while gaining access to Do it Best’s programs, buying power and support network.
“We understand the unique challenges of the retail industry, and if we are successful in our bid for these assets we would be committed to driving True Value stores’ growth alongside our valued Do it Best member-owners,” Starr says. “As the industry’s only full-service co-op distributor, our focus remains on building strong, profitable partnerships that benefit our stores, our vendors and consumers. This acquisition would represent not just the growth of Do it Best but a brighter future for the entire independent home improvement channel.”
If Do it Best is the winning bidder, the transaction is expected to close by the end of the year, pending regulatory and court approval. True Value will continue to operate under Chapter 11 protection with Do it Best providing a stalking horse bid. Under the agreement, Do it Best will purchase many of the True Value assets and business operations. To the extent True Value requires additional financing during the bankruptcy process, Do it Best has committed to provide incremental capital to True Value in an effort to help ensure independent True Value retailers’ the ability to continue serving their customers throughout the process.
The North American Hardware and Paint Association (NHPA) and Paint & Decorating Retailer will be following up in the coming days with more details as they become available, including an extensive Q&A with Do it Best president and CEO Dan Starr. Subscribe to our newsletters and follow on LinkedIn, Facebook and the Instagram for the latest developments.
