Merger Trend Dips Slightly

Craig Webb —

This map depicts 2023 acquisitions, new store openings and closures. Locations of construction supply facilities that were acquired are indicated by black pins; greenfield new store openings in green; and closed businesses in red. Source: Webb Analytics.

In 2023, the hardware and building materials industry saw fewer merger and acquisition deals yet a similar number of store openings as the previous year.

With one exception, mergers and acquisitions involving hardware stores and home centers were devoid of big deals, with 34 transactions landing just 41 facilities, according to Webb Analytics’ recently released Deals Report for 2023. In 2022, there were 55 deals that brought in 109 facilities. The exception for 2023 is The Home Depot, which announced in November the purchase of 44 International Designs Group stores, which specialize in tile, stone and appliances, and provide new outlets to serve pros and their high-end customers.

Aubuchon did three acquisitions, picking up new locations in Massachusetts, Pennsylvania and Maryland. Further south, The Helpful Hardware Company also did three deals, taking in one store each in North Carolina, South Carolina, and Georgia. And in Illinois, Coborn’s purchased three Sullivan’s Stores. No other buyers were more active.

In January 2023, Aubuchon Company acquired Zimmerman’s Hardware in Burtonsville, Md. Aubuchon, which operates 114 stores in nine states, continues expanding and acquired Brunswick Ace Hardware in January 2024.

As in past years, greenfield store openings were more common than deals, with 70 new locations in 2023 versus 69 in 2022. Ace Hardware Corp. opened eight stores under its Westlake Ace Hardware brand plus three more bearing the Great Lakes Ace Hardware marquee. Great Lakes Ace also bought Akard True Value of Zionsville, Ind., and Bellerive True Value in Nicholasville, Ky.

Great Lakes Ace purchased Akard True Value in Zionsville, Ind., this past year. Leigh Ann Akard and the store were recognized with the Beacon Award for Community Service in 2020. 

Two companies better known for their lumberyards picked up hardware units. TAL Holdings bought Beaverhead Home Center in Dillon, Mont., and Ennis Lumber Company in Ennis, Mont. Meanwhile, Nation’s Best Holdings acquired Cain Hardware of Carthage, Texas; East Texas Hardware of Kilgore, Texas; and Mountain View Home and Hardware in King, N.C.

All told, residentially focused construction supply companies—both DIY and pro-oriented—saw 22 percent fewer deals in 2023, but the number of locations acquired declined just 2.6 percent from the year before. At the same time, the number of greenfield openings dropped only 5 percent.

Continue Reading in the March 2024 Issue of Hardware Connection