Advance Auto Parts Inc. has acquired the DieHard brand from Sears parent company Transform Holdco LLC for $200 million utilizing cash on hand. This asset acquisition will give Advance the right to sell DieHard batteries and enables Advance to extend the DieHard brand into other automotive and vehicular categories.
In addition, the deal allows Transformco 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,” Advance Auto Parts President and CEO Tom Grieco said in a statement. “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.
Peter Boutros, president of Transformco’s Kenmore, Craftsman and DieHard business unit, added: “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. 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.”
