Advance Auto Parts, Inc. has acquired the DieHard brand from Transform Holdco LLC , parent company of Sears, for $200 million USD utilizing cash on hand.
This asset acquisition will give Advance the right to sell DieHard batteries, and enables Advance to extend the brand into other automotive and vehicular categories.
In addition, the deal allows Transformco to sell the brand 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 the 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,” says Tom Greco, president and CEO, Advance Auto Parts. He says that it 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.”
“DieHard stands for durability and reliability and we will strengthen and leverage the brand in other battery categories, such as marine and recreational vehicles.” He says to that the company sees opportunities to extend the brand into other automotive categories. “We remain committed to providing our customers with high-quality products and excellent service. 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.”
“DieHard is among the most successful and one of the most widely trusted brands in the auto industry, and we have long believed that the brand has even more potential,” said Peter Boutros, President of Transformco’s Kenmore, Craftsman and DieHard business unit. “DieHard revolutionized the automotive battery category when it launched in 1967, and has continued to be a leader in the category. 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.”