Insights from Do it Best’s Latest Podcast: CEO Dan Starr on True Value Acquisition and Member Impact
In a podcast released on November 12, Do it Best President and CEO Dan Starr provided an inside look into the company’s ongoing efforts to acquire True Value. During the 22-minute video, Starr spoke with Curtis Smith, host of the Better Together podcast. Starr addressed key concerns from members and shared his vision for the future of the cooperative and True Value’s integration as the November 22 closing approaches.
For more about the True Value bankruptcy and status of the Do it Best acquisition, visit the feature article “News Update: Green Light for Do it Best Purchase of True Value” in the November issue of Hardware Connection.
Here are three main takeaways from Starr’s discussion on the podcast:
1. Protecting Do it Best Members and Rebates
One of the primary concerns among Do it Best members is how the acquisition might affect their annual rebates and the cooperative’s financial stability. Starr explained that Do it Best has designed the transaction to keep True Value operations financially separate. This structure means True Value’s assets will reside in a subsidiary with its own profit and loss statements, safeguarding Do it Best’s core operations and minimizing any disruption to the rebate process.
While the acquisition itself is structured to limit direct financial impacts on members, Starr acknowledged that the current economic slowdown across the hardware industry might influence rebates this year more than the True Value acquisition itself.
“This year, our members and Do it Best, we’re seeing a slowdown in every single category of sales—that’s going to have a bigger impact on rebate,” Starr said. However, he emphasized that Do it Best’s leadership is working to shield members as much as possible by managing any acquisition-related expenses within True Value’s financial division.
2. Strategic Growth and a Streamlined Future for True Value
Starr explained that Do it Best’s acquisition approach focuses on select assets, such as True Value’s inventory, trademarks, and manufacturing facilities, while avoiding legacy costs such as pension obligations and historical debt. This selective acquisition allows Do it Best to implement a leaner operational model, reducing overhead and driving profitability through efficiency rather than shouldering the entire burden of True Value’s past debts, Starr said during the podcast.
“We’re not taking on all their legacy costs, all their debts and obligations, all their pension plans…we’re only acquiring the assets and just a few limited assumptions of liability,” Starr said.
To maximize efficiency, Starr mentioned that distribution centers and personnel may be realigned within the True Value operation. Starr said this approach is designed to foster a more efficient True Value that complements Do it Best without directly affecting members’ existing business operations.
3. A Generational Growth Opportunity for Do it Best and its Members
Throughout the podcast, Starr emphasized that the True Value acquisition represents a rare, generational growth opportunity for Do it Best. Rather than an immediate integration, Starr described a two-year roadmap that would allow Do it Best to carefully evaluate each step, gradually positioning True Value for long-term success while preserving Do it Best’s financial health and operational continuity.
“This is a generational opportunity,” Starr noted, adding that such a chance for growth is “something that doesn’t come to us often.”
While maintaining Do it Best’s rebate structure and protecting member interests, Starr expressed that the acquisition could bring substantial potential benefits to members such as improved vendor leverage, enhanced supply chain efficiency, and a stronger market position. He also cited True Value’s $1.5 billion in annual sales as another positive to the acquisition. “I don’t think we’re going to capture all of that,” Starr said. “I do think the opportunity is there to capture most of it, and that’s what we need to pursue.”
