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TRUE VALUE COMPANY ANNOUNCES SALES AGREEMENT WITH DO IT BEST

Vaseline October 14, 2024

Initiate Chapter 11 proceedings to complete value maximizing transaction

Continue to serve independent True Value stores and other customers as usual

CHICAGO, October 14, 2024 /PRNewswire/ — True Value Company, LLC (“True Value” or the “Company”), one of the world’s leading hardline wholesalers, today announced that it has entered into an agreement to bring substantially all of the Company’s business operations to its home improvement to be sold by industry peer Do it Best Corp.

To complete the sale in the most efficient manner, True Value and certain of its subsidiaries have initiated voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware. True Value will continue its daily operations serving 4,500 independent retailers who rely on True Value for the right products, trusted expertise and the 75-year-old iconic brand.

“After a thorough review of strategic alternatives, we determined that selling our business was the path forward to maximize value and best serve our retail partners and other stakeholders going forward,” said Chris KempaCEO of True Value. “We believe that entering the process with an agreed offer from Do it Best, which has a similar decades-long history in the home improvement field and also operates with a focus on supporting members and helping them grow, is the most beneficial next step is for True Value and our employees, customers and supplier 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 the company has taken in 2024 to better position the company and its iconic brand for the long term, including modernizing its existing operations, driving greater efficiencies and investing in additional marketing campaigns. .

“A successful acquisition of True Value assets would mark a strategic milestone for Do it Best and home improvement retailers around the world,” the company said Dan StarrDo the Best President and 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 completed, would provide True Value and independent hardware stores with the strongest growth opportunities for years to come.”

The agreement with Do it Best, which was concluded following a robust marketing process, provides for a significant cash consideration and a meaningful assumption of liabilities related to ongoing operations. The company requests that Do it Best be designated as a 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 day-to-day operations through sales, the Company seeks to use its cash collateral to finance operations. To the extent that True Value requires additional financing during the process, the company has received a commitment from Do it Best to provide incremental capital.

The company also files a series of customary motions with the Court to fulfill its obligations to its stakeholders during the trial. These “first day” motions include requests to continue paying wages and providing benefits to associates in the normal course of business and to offer essential customer programs. The Company expects to pay sellers in the normal manner for authorized goods received and services rendered after filing.

The company aims to complete the sales process by the end of the year.

True Value stores are independently owned and are not part of the Chapter 11 proceedings, with the exception of one company-owned store in Palatine, IL.

Court records and other information about the proceedings can be found at https://omniagentsolutions.com/TrueValue. Sellers with questions can call (866) 771-0561 (U.S. and Canada) or +1 (818) 356-8633 (international) or email (email protected).

Skadden, Arps, Slate, Meagher & Flom LLP, Glenn Agre Bergman & Fuentes LLP, and Young Conaway Stargatt & Taylor, LLP serves as legal advisor, M3 Partners, LP serves as financial advisor, and Houlihan Lokey serves as investment banker for 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 more than 75 years of experience proudly carries on 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 independent stores committed to providing customers with exceptional products and expert guidance for their DIY and home maintenance projects.

While maintaining the independent spirit and community focus, operations have expanded dramatically, giving local stores the freedom to stock essential products and provide services for business growth, all while maintaining the familiar, old brand.

True Value is not just a retail chain, True Value is your trusted partner for everything related to hardware.

Media contacts:

Nadia Hill
Communications Manager | True Value Company
(email protected)

Sherri L. Toub / Wendi Kopsick
Kekst CNC
(email protected)

SOURCE True Value Company