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PE Firm Takes 70% Stake in True Value
Chicago-based retailer True Value Company will come into the portfolio of private equity firm ACON Investments, as ACON takes a 70% stake. The deal to create a new operating company moves True Value away from the retail co-op model on which it was founded in 1948.
ACON will make a strategic investment in the new operating company, with current True Value retailers having 70% of their invested capital and 100% of their promissory notes repaid when the deal closes. This represents approximately $229 million in returns and credits to the retailers, who will retain a 30% holding in the operating company.
“As the retail industry continues to experience unprecedented change, we must ensure that True Value stays ahead of that change, so that we are best placed to support the independent hardware retailer for decades to come,” said John Hartmann, True Value’s president and CEO.
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- ◦Sale/Acquisition
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