Metcash Brings Challenge To Bunnings With Home Timber & Hardware Acquisition
Mitre 10 Australia owner Metcash will acquire Home Timber & Hardware Group (HTH), bringing the two businesses together as it takes on rival Bunnings.
Metcash will make the acquisition for a cash consideration of $165 million, entering an agreement with Woolworths subsidiary Hydrox Brands, as Woolworths continues the process of the sale of its home improvement business, including Masters.
Metcash states that the acquisition will create a combined hardware network of around 1,800 stores (including around 1,235 unbannered stores).
Meanwhile, Woolworths, which is due to release its full-year results tomorrow, remains in a trading halt.
Metcash expects the acquisition to complete in October.
“The combination of the two businesses will mean that Metcash’s hardware business will have a turnover of ~$2 billion,” Metcash Group CEO Ian Morrice commented.
“This increased scale, together with the opportunity to realise significant efficiencies, will enable us to be more competitive and deliver a better outcome for both our hardware retailers and their customers.
“The interests and values of Mitre 10 and HTH retailers are closely aligned. Our objective is to continue to build successful independent retailers and grow a vibrant independent hardware sector, for the long term.”