Do it Best 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 proposed acquisition, supported by the Do it Best board of directors, would create a worldwide network of independent home improvement stores exceeding 8,000 locations in the U.S.
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, according to the company.
“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world,” Dan Starr, Do it Best president and CEO, said. “Do it Best has a proven track record of driving profitability through the most efficient operations in the industry. The acquisition, if consummated, would provide True Value and independent hardware stores the strongest opportunities for growth for years to come.”
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 ensure independent True Value retailers’ the ability to continue serving their customers.
“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 said. “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.”
