With aging owners, and often a lack of succession possibilities, hardware retailers are consolidating. It’s a story that’s playing out across many industries in the country.
Sometimes called a “roll-up”, a large hardware retailer buys additional locations and removes cost through consolidating functions. They also may centralize other functions like merchandising to increase revenue through additional sophistication.
A major player in hardware consolidation is Aubochon, a 4th generation family company based in Massachusetts. They are a very acquisitive company that even has a section on their website for hardware stores that want to sell. They position themselves as being a “buyer of choice” for retailers looking to sell.
Aubuchon has been family owned since 1908, bringing 117 years of experience. That familiarity with the industry and longevity may offer piece of mind to sellers that a purely financial buyer may not bring.
Their latest acquisition was announced on July 17th when they acquired Wyoming Ace Hardware in Wyoming, RI. That brought their store count up to 131 across 11 states.
Rick [Osborne] built Wyoming Ace Hardware with heart, purpose, and a deep connection to the community. For more than 22 years, he’s created more than just a store, he’s built a trusted place where neighbors come together. We’re honored to carry that spirit forward as we open our first store in Rhode Island and reimagine it in a new location in Richmond.
William E. Aubuchon, IV, President & CEO of Aubuchon
Rick Osborne, the owner of Wyoming Ace, felt comfortable selling to Aubuchon because they share the same values and community. Rick will be retiring following the transaction.
I want to sincerely thank every customer who supported us and every team member who worked alongside me. You’ve all been like family, and I’ll miss you deeply. I wish you nothing but the best in the years ahead.
Rick Osborne, Owner of Wyoming Ace
Beyond joining a larger operation, another area that Aubuchon and other buyers add value is through invested capital. An operator often faces the dilemma of whether they want to invest more money in the business, especially as they near retirement.
Buyers have more access to capital, different investment criteria, and a different time horizon. In addition to announcing acquisitions on their LinkedIn page, Aubochon also frequently posts about new store remodels.
Wyoming Ace is a perfect example, because they plan on moving to a new location. The store will move to a nearby spot that was a former Walgreens pharmacy in Richmond, RI, and will be rebranded to “Aubuchon Ace Hardware.”
Helpful Hardware
Another large retailer that’s been acquisitive is The Helpful Hardware company. Their history dates back to 1918, but more recently they teamed up with the private equity firm JPB Partners.
Since the recapitalization in 2019, they’ve been growing fast through acquisition. They’ve done twelve acquisitions since then, all operating under the Ace Hardware umbrella.
Their most recent acquisition was for Jordan’s Ace Hardware of Union, South Carolina. The deal closed at the beginning of the month.