Advance Auto Parts Buys DieHard Brand
Advance Auto Parts Inc. has acquired the DieHard brand from Transform Holdco LLC (“Transformco”) for $200 million.
The deal allows Advance Auto Parts to sell DieHard batteries and extend the DieHard brand into other automotive and vehicular categories.
In addition, the transaction allows Transformco, which is the parent company of Sears and Kmart, to sell DieHard brand batteries through its existing channels pursuant to a supply agreement with Advance.
Advance is also granting Transformco an exclusive royalty-free, perpetual license to develop, market, and sell DieHard branded products in non-automotive categories.
“We are excited to acquire global ownership of an iconic American brand. DieHard will help differentiate Advance, drive increased DIY customer traffic and build a unique value proposition for our professional customers and independent Carquest partners. DieHard has the highest brand awareness and regard of any automotive battery brand in North America and will enable Advance to build a leadership position within the critical battery category,” said Tom Greco, president and CEO, Advance Auto Parts.
Greco said the company will leverage the DieHard brand in other battery categories, such as marine and recreational vehicles as well as extend it in other automotive categories. “The addition of DieHard to our industry leading assortment of national brands, OE parts and owned brands will enable us to differentiate Advance and drive significant long-term shareholder value.”
Peter Boutros, president of Transformco’s Kenmore, Craftsman and DieHard business unit, said his company believes the brand has potential in markets beyond automotive service.
“Advance Auto Parts’ acquisition of this iconic American brand will complement our plans to introduce new DieHard products in non-automotive categories such as sporting goods, lawn and garden, authentic work wear and other exciting new categories,” said Boutros.
Advance Auto Parts operates 4,891 stores throughout the United States, Canada, Puerto Rico and the U.S. Virgin Islands.