TRUE VALUE COMPANY ANNOUNCES SALE AGREEMENT WITH DO IT BEST
PR Newswire
CHICAGO, Oct. 14, 2024
Initiates Chapter 11 Proceedings to Complete Value-Maximizing
Transaction
Continuing to Serve Independently Owned True Value Retail Stores and
Other Customers as Usual
CHICAGO, Oct. 14, 2024 /PRNewswire/ -- True Value Company, L.L.C. ("True
Value" or the "Company"), one of the world's leading hardlines
wholesalers, today announced that it has entered into an agreement to
sell substantially all of the Company's business operations to home
improvement industry peer Do it Best Corp.
To complete the sale in the most efficient manner, True Value and
certain of its affiliates initiated voluntary Chapter 11 proceedings in
the U.S. Bankruptcy Court for the District of Delaware. True Value will
continue its day-to-day operations serving 4,500 independently owned
retailers that rely on True Value for the right products, trusted
expertise, and its 75-year-old iconic brand.
"After a thorough evaluation of strategic alternatives, we determined
that the sale of our business was the path forward to maximize value and
best serve our retail partners and other stakeholders into the future,"
said Chris Kempa, True Value's Chief Executive Officer. "We believe that
entering the process with an agreed offer from Do it Best, who has a
similar decades-long history in the home improvement space and also
operates with a focus on supporting members and helping them grow, is
the most beneficial next step for True Value and our associates,
customers, and vendor partners. We thank these valued stakeholders for
their continued loyalty as we work to secure a stronger future for True
Value."
True Value's sale process is the next step in a series of actions that
the Company has taken in 2024 to better position the business and its
iconic brand for the long term, including modernizing its legacy
operations, driving greater efficiencies, and investing in additional
marketing campaigns.
"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 & Chief Executive
Officer. "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."
The agreement with Do it Best, which was reached following a robust
marketing process, provides significant cash consideration and
meaningful assumption of liabilities related to the ongoing business.
The Company is requesting designation of Do it Best as the "stalking
horse," or lead, bidder and to initiate a competitive bidding process
under Section 363 of the Bankruptcy Code designed to achieve the highest
or otherwise best value for the Company. To support the day-to-day
business through the sale, the Company is seeking to use its cash
collateral to fund operations. To the extent True Value requires
additional financing during the process, the Company has received a
commitment from Do it Best to provide incremental capital.
The Company is also filing with the Court a series of customary motions
seeking to uphold its commitments to its stakeholders during the
process. These "first day" motions include requests to continue to pay
wages and provide benefits to associates in the ordinary course and
offer essential customer programs. The Company anticipates paying
vendors in the ordinary course for authorized goods received and
services rendered after the filing.
The Company is targeting completion of the sale process by year end.
True Value stores are independently owned and are not a part of the
Chapter 11 proceedings, with the exception of one Company-owned store in
Palatine, IL.
Court filings and other information regarding the proceedings can be
found at https://omniagentsolutions.com/TrueValue. Vendors with
questions can call (866) 771-0561 (U.S. & Canada) or +1 (818) 356-8633
(international) or email TrueValueInquiries@OmniAgnt.com.
Skadden, Arps, Slate, Meagher & Flom LLP, Glenn Agre Bergman & Fuentes
LLP, and Young Conaway Stargatt & Taylor, LLP are serving as legal
counsel, M3 Partners, LP is serving as financial advisor, and Houlihan
Lokey is serving as investment banker to the Company.
About True Value Company
True Value Company, headquartered in Chicago, is one of the world's
leading hardlines wholesalers. The globally recognized brand with over
75 years of experience proudly carries a legacy of empowering
independent retailers within their local communities, becoming a symbol
of strength and resilience that customers recognize and trust.
True Value Company has an international network of 4,500 independently
owned and operated stores that are committed to providing customers
exceptional products and expert guidance for their DIY and home
maintenance projects.
While retaining an independent spirit and community focus, operations
have vastly expanded, providing local stores the freedom to stock
essential products and offer services for business growth, all while
maintaining the trusted legacy brand.
True Value is not just a chain of stores, True Value is your trusted
partner for all things hardware.
Media Contacts:
Nadia Hill
Communications Manager | True Value Company
nadia.hill@truevalue.com
Sherri L. Toub / Wendi Kopsick
Kekst CNC
TrueValueMedia@KekstCNC.com
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SOURCE True Value Company
(END) Dow Jones Newswires
October 14, 2024 05:31 ET (09:31 GMT)
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