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Do it Best, the nation’s largest member-owned co-op for hardware and lumber products, has bid to acquire substantially all assets from True Value, a Chicago-based hardlines wholesaler that shortly before 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.
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 services. 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,” said Dan Starr, Do it Best president and CEO. “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,” added Starr. “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,” Starr concluded.
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.
Based in Fort Wayne, In., Do it Best is the only US-based, member-owned comprehensive and fully integrated hardware, lumber, and building materials buying cooperative in the home improvement industry. With annual sales of nearly $5 billion, Do it Best serves thousands of member-owned locations across the United States and in more than 50 other countries.
