True Value looks to sell company
In a letter to vendors, True Value Company CEO Chris Kempa said the Chicago-based distributor is pursuing a potential sale of the company.
"Right now, we have active, competitive offers for our business, and we are working tirelessly to finalize a purchase agreement," Kempa wrote.
The True Value CEO said that more information will be divulged in the coming days. He said in the letter that he had originally intended to inform the industry when a deal was complete, but because of many questions about the company's direction, he decided to provide the status update in the form of the Oct. 4 letter.
"We are in the final stages of deciding the path forward," he wrote. "Our team is working tirelessly to minimize disruptions, act in your best interest, and move us forward."
Kempa added: "All of the strategic partners being considered are excited about the future of True Value and bolstering the independent home improvement channel."
If a deal is made final, it would mark the second time True Value Company would be involved in a major sale in six years. In 2018, private equity firm Acon Investments bought 70 percent of what was at the time a member-owned hardware co-operative.
The 2018 sale to Acon faced some opposition from retailers, but was approved by a vast majority, True Value said. At the time, True Value retailers were able to unlock their equity and received approximately $229 million in returns and credits as part of the deal.
The 2018 deal also kept 30 percent of True Value Company under the ownership of retail members. It's unclear how a sale of True Value today would affect the member-owned portion of the distributor.
