CHICAGO — U.S. home improvement co-operative The True Value Co. has agreed to sell 70% of the company to private investment firm ACON Investments. The deal would effectively transition the company away from its current co-op model, with the majority of shares owned by ACON.
The move, which is subject to member approval, would turn about $229 million over to True Value’s member dealers, who would in turn retain the remaining 30% ownership of the company. The deal would represent 70% of the dealers’ invested capital, 100% value of their promissory notes, and their 2017 patronage dividends. True Value’s board has unanimously approved and recommended the transaction.
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