Supermarket and hardware wholesaler Metcash will acquire national tools retailer Total Tools for $57 million following a set of full-year earnings bolstered by the COVID-19 pandemic.
Metcash supplies IGA, Mitre 10, Home Timber & Hardware and Cellarbrations bottle shops, all of which were beneficiaries of the coronavirus, with the company's supermarkets division reporting underlying sales growth for the first time in eight years.Supermarket wholesale sales, excluding tobacco sales and the end of the company's supply deal with Drakes supermarkets, increased 6.3 per cent.
In a separate announcement today, Metcash revealed it had also entered into the final stage of negotiations with retailer Total Tools to acquire 70 per cent of the business for $57 million. Total Tools operates 81 stores across the country and reported $555 million in revenue for the 2019 calendar year.
Chief executive Jeff Adams said the result was "very admirable" and the business had seen a material and permanent market share shift towards its brands.
domp goodbye total tools