On Sunday, True Value announced that it was acquiring Ace Hardware’s retail business in a deal valued at $2.5 billion. The move comes as the two companies look to compete with the likes of Home Depot and Lowe’s.
The deal, which is expected to close in the second quarter of 2018, will see True Value becoming a privately held company. Ace Hardware shareholders will own 50.1% of the combined company, while True Value shareholders will own 49.9%.
True Value CEO John Hartmann said in a statement that the deal would create “a powerhouse home improvement retailer.”
“The combination of our two companies will allow us to better compete against the likes of Home Depot and Lowe’s,” he said.
The move comes as the home improvement retail market has become increasingly competitive. In recent years, Home Depot and Lowe’s have been able to undercut smaller players like True Value and Ace Hardware on price.
But Hartmann said that the combined company would be able to compete on price while also offering a more “personalized shopping experience.” “We will be able to offer our customers a more differentiated product selection and a better overall shopping experience,” he said.
Conclusion: Did True Value and Ace Hardware merge?
Yes, True Value announced that it was acquiring Ace Hardware’s retail business in a deal valued at $2.
