Do it Best has announced a significant move to acquire True Value’s 4,500 members and $1.5 billion in buying power, a deal that CEO Dan Starr calls a “generational opportunity for growth.” The acquisition will dramatically expand Do it Best’s scale, a feat Starr noted could not be achieved organically. True Value, which filed for Chapter 11 bankruptcy, has designated Do it Best as the lead bidder, offering $153 million in cash, assuming certain liabilities, and up to $45 million in trade payables.
While this acquisition could double Do it Best’s membership and increase its purchases by a third, Starr acknowledges the logistical challenges that come with such rapid growth. As the industry watches closely, other distributors like Orgill have stepped up efforts to attract True Value dealers.
Read more about this major shift in the hardware sector here.
