International DIY News
Metcash Preparing Offer For Specialist Tool Retailer
Metcash, the owner of the Australian DIY chain Mitre 10, is understood to be working on a bid for a specialist tool retailer, Total Tools, as it looks to move into the specialist hardware market.
Established more than thirty years ago, Total Tools is Australia's largest trade and industrial tool retailer, offering over 60,000 product lines though its franchise stores and a transactional website. In 2018, the business was thought to be looking into the possibility of listing on the Australian Stock Exchange, but decided not to go ahead.
An acquisition would help Mitre 10 compete with Bunnings, which recently announced the planned acquisition of Adelaide Tools. Metcash merged the Mitre 10 and Home Timber & Hardware businesses in late 2016, creating a network with the capability of challenging the Bunnings behemoth.
Miles Advisory is running an auction on behalf of the Total Tools' franchise owners, who each own 5% or less of the business. Other interested parties are understood to include a private equity firm.
A deal of around ten times the retailer's $25m earnings is expected.
Source : Insight DIY Team
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