Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Sears Parent Offloads Last-Mile Business to Costco for $1B
Costco has acquired Innovel Solutions, the middle-mile and final-mile delivery and installation business owned by Sears parent Transform Holdco (TFCO), for $1 billion. Proceeds from the sale will enable the struggling retailer to repay all of its non-real estate debt.
Under the agreement, Innovel will continue providing service to Sears and Kmart customers. Costco, which has been served by Innovel since 2015, will retain more than 1,500 Innovel employees on a go-forward basis.
Additionally, Costco will enter TFCO’s Service Live platform to source technicians for complex installations across the country.
“We believe the acquisition will allow us to grow our e-commerce sales of ‘big and bulky’ items at a faster rate,” said Costco CEO Craig Jelinek.
Headquartered in Hoffman Estates, IL, TFCO currently owns or leases 500-plus retail properties and supporting facilities, and will focus its efforts on creating value from the real estate portfolio.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
