True Value Explores Potential Sale Amid Active Offers
True Value Company is in the final stages of pursuing a sale, according to a letter True Value CEO Chris Kempa shared with the company’s vendors. With the support of its board of directors, the company has hired an investment banker to explore options that align with the best interests of its associates, retailers, and vendor partners. This decision comes after nearly a year of moves aimed at modernizing and streamlining True Value’s operations.
“Right now, we have active, competitive offers for our business, and we are working tirelessly to finalize a purchase agreement,” Kempa state in the letter. “All of the strategic partners being considered are excited about the future of True Value and bolstering the independent home improvement channel.”
While the process is not yet complete, Kempa said the company is working to finalize a purchase agreement and will provide more updates in the coming days.
The move follows True Value’s ongoing efforts to right-size its legacy operations with the support of its current equity investors.
True Value’s leadership is focused on minimizing disruptions and maintaining strong relationships with its vendor partners throughout the transition process. Further updates are expected as the sale nears completion.
ACON Purchase of True Value
In 2018, True Value Company sold 70 percent of its business to private equity firm ACON Investments, signaling a significant departure from its long-standing cooperative structure. For decades, True Value was one of the largest member-owned hardware cooperatives, representing thousands of independent retailers. The sale was driven by the need for capital to modernize the business, while offering members greater financial flexibility. Under the deal, members retained a 30 percent stake, ensuring some level of involvement in the company’s future.
One of the key changes post-sale was the elimination of mandatory national advertising fees, allowing individual retailers more autonomy in how they marketed their businesses. This was seen as a way to simplify operations and make True Value more competitive in a retail landscape dominated by big boxes Home Depot and Lowe’s.
Many True Value retailers supported the sale, citing the benefits of ACON’s financial backing. The move also allowed True Value to expand its distribution network, invest in e-commerce, and pursue new store development, positioning the company for long-term growth.
Despite support from many True Value members, the sale to ACON Investments generated significant controversy within the cooperative. Some store owners expressed concerns about losing control of the business and the potential for private equity to prioritize short-term profits over long-term growth. Smaller retailers feared they might lose their voice and influence in decisions that could affect their operations, with questions arising about whether the new structure would lead to increased purchasing requirements or more stringent conditions for carrying the True Value name.
Others worried that ACON might liquidate assets for immediate gains, potentially harming the cooperative’s foundation. Store owners accustomed to the co-op model were uneasy about the shift to a corporate structure, which many believed could disadvantage smaller, independent hardware stores. Some members viewed the move as a “railroad deal,” questioning whether they had enough time to fully evaluate the decision and its long-term impacts.
Updates on True Value Sale to Follow
Hardware Connection has reached out to other major distributors and True Value retailers, some of whom were surprised by the news of the impending sale. Distributor representatives and retailers did not return calls for comments or wished to comment after learning more details about any transaction.
Hardware Connection will update this story on our site and include an article in our upcoming October issue.
True Value Timeline
1948: John Cotter founded Cotter & Company, a cooperative of 25 independent hardware stores.
1963: Cotter & Company purchased the rights to the True Value trademark from Hibbard, Spencer & Bartlett, turning it into a national retail brand.
1971: The company began a long-standing partnership with NFL broadcaster Pat Summerall, who became the spokesperson for its commercials.
1989: After John Cotter passed away, the company’s sales had reached over $2 billion, with more than 6,000 True Value Hardware stores.
1997: Cotter & Company merged with ServiStar Coast to Coast to form TruServ, becoming a larger co-op with initial sales of $4.5 billion.
2006: The company rebranded itself as True Value Company.
2018: True Value sold 70 percent of its business to private equity firm ACON Investments, transitioning from a co-op to a more traditional corporate structure while keeping 30 percent of member ownership.
2023: True Value celebrated its 75th anniversary, emphasizing its commitment to innovation and community values.
