For Do it Best, it's a done deal
Describing its deal as "monumental" and "transformative" for the entire independent hardware industry, Fort Wayne, Indiana-based Do it Best announced Friday the successful acquisition of True Value Company, a long-time competitor and rival.
True Value had filed for bankruptcy on Oct. 14, with Do it Best stepping in as a stalking-horse bidder.
The successful acquisition brings significant assets to Do it Best, including inventory, brand rights, and paint manufacturing facilities. By acquiring these key resources, Do it Best says it is poised for substantial growth and increased capability to support independent retailers.
Sizing the competition
After the acquisition, Do it Best and True Value have a combined store count of more than 8,000.
Depending on measurement criteria, Oak Brook, Illinois-based Ace Hardware Corp. could make a case for being the largest co-op. The Oak Brook, Illinois-based competitor—which points to 5,900 stores in 60 countries—reported revenues of $9.1 billion in its most recent full year. That's higher than Do it Best’s sales ($4.57 billion) and True Value’s revenues ($1.45 billion, according to court papers) combined.
Orgill, though not a co-op, says it serves more than 12,000 hardware stores, home centers and prodealers.
“This has been a challenging process,” said Do it Best CEO Dan Starr. “However, the shared commitment from our team and the True Value team has made today possible. We are now proud to be the world’s largest cooperative in our space, and that positions us to make a real difference for all our store owners.”
[See sidebar: "Sizing the competition."]
Starr announced that True Value will operate as a separate subsidiary for now, allowing Do it Best to maintain high-quality service while carefully integrating True Value’s operations. He emphasized that this approach will ensure a smooth transition and continued reliability for both Do it Best members and the newly welcomed True Value retailers.
“We’re excited to welcome True Value retailers into the Do it Best family,” Starr added. “Our commitment to championing the independent retailer is at the heart of everything we do, and this acquisition is about ensuring that success, now and in the future.”
To support this transformation, Do it Best has established a new leadership team dedicated to stabilizing and growing the True Value business while maintaining a focus on Do it Best member growth. Starr appointed Nick Talarico as President of Do it Best and Dent Johnson as President of True Value.
Before the acquisition, Talarico had been Do it Best's executive vice president of sales and marketing. Johnson had previously served Do it Best in the role of executive vice president of operations.
Former True Value executives who will join Johnson’s team include Eric Lane, senior vice president of marketing and John Vanderpool, senior vice president of manufacturing. The list does not include True Value CEO Chris Kempa, who took over the top post at True Value in March 2020, replacing John Hartmann, who left the hardware space to become COO for Bed Bath & Beyond.
Johnson’s True Value team includes:
● Bill Habegger, Vice President of Information Technology
● Justin Hanford, Vice President of Merchandising
● Eric Lane, Senior Vice President of Marketing
● Tim Miller, Senior Vice President of Logistics & Distribution
● Chris Okapal, Vice President of Sales & Business Development
● Steve Rose, Vice President of Distribution
● Matt Saines, Vice President of Finance
● Rob Schmiedel, Vice President of Operations & Sales Enablement
● Ken Sorg, Vice President of Supply Chain
● Celeste Stevens, Vice President of Human Resources
● John Vanderpool, Senior Vice President of Manufacturing
● Jenna Grannan, Director of Marketing
● Randy Rusk, Director of Communications
The acquisition is expected to be transformational for Do it Best. By leveraging new efficiencies, deepening vendor relationships, and integrating key assets, Do it Best says it aims to position the cooperative for long-term success.
“This is a generational opportunity that will shape the future of our cooperative and our industry,” said Starr. “We’re focused on taking our time to get it right. We ask for patience as we integrate True Value and help everyone grow and achieve their dreams.”
