True Value Company, L.L.C. (“True Value” or the “Company”) today announced that it has agreed to sell “substantially all” of the Company’s business operations to home improvement industry peer Do it Best Corp.
“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,” Chris Kempa, True Value’s Chief Executive Officer, stated.
“We believe that entering the process with an agreed offer from Do it Best, which 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.”
Dan Starr, Do it Best President & Chief Executive Officer, today stated, “A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world… 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.”
In its bankruptcy court filings, True Value stated that it is experiencing a significant cash shortage due to the slowdown in the housing market and the fact that consumers are now being more selective about non-essential purchases such as hardware. While larger competitors like Home Depot and Lowe’s have also been experiencing a slump since the pandemic began, they are in a much better financial position than True Value.
True Value’s transaction with Do it Best is expected to close by the end of the year.
By CEO NA Editorial Staff
