True Value to Be Acquired Amid Bankruptcy Filing
Do it Best, the nation’s largest member-owned co-op for hardware and lumber products, has announced its bid to acquire substantially all assets from True Value, a Chicago-based hardlines wholesaler that filed for Chapter 11 bankruptcy under private equity ownership. The Do it Best board of directors unanimously supports the proposed acquisition, which would create a global network of more than 8,000 locations in the U.S. and over 50 countries worldwide.
This acquisition aligns with Do it Best’s commitment to supporting independent home improvement store owners. If successful, the acquisition would further Do it Best’s mission to expand market presence and provide operational excellence, benefiting independent entrepreneurs as it has for 80 years.
“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers globally,” said Dan Starr, Do it Best president and CEO. “Do it Best has a proven track record of driving profitability through efficient operations. This acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
While maintaining support for its member-owners, this acquisition would allow Do it Best to build on the True Value brand, giving current stores access to Do it Best’s programs, buying power, and support.
“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 Do it Best member-owners,” added Starr. “As the industry’s only full-service co-op distributor, our focus remains on building strong, profitable partnerships that benefit stores, vendors, and consumers. This acquisition would not only grow Do it Best but ensure a brighter future for the entire independent home improvement channel,” Starr concluded.
If Do it Best’s bid succeeds, 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 acquire many True Value assets and operations, with additional capital available to ensure True Value retailers can continue serving their customers during the bankruptcy process.
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