TRUE VALUE COMPANY ANNOUNCES SALE AGREEMENT WITH DO IT BEST

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Oct 14, 2024, 02:00 ET

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 [email protected].

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
[email protected]

Sherri L. Toub / Wendi Kopsick
Kekst CNC
[email protected]

SOURCE True Value Company