The deal is for $1 billion in cash, and it’s the largest acquisition made by Costco since it completed a merger with Price Club in 1993. The move is also indicative of Transform Holdco’s continued attempts to get rid of costly assets related to Sears’ bankruptcy.
Transform Holdco, which acquired hundreds of both Sears and Kmart stores, said it would use the money to help pay off debt.
Innovel has about 1,500 employees throughout 11 distribution centers and upwards of 100 final-mile centers. The company helps to deliver and install large-ticket items like appliances, mattresses and furniture.
Transform Holdco has closed many Sears locations and plans to attempt to streamline its movements and growth through the next couple of months and pivot focus to stores that are profitable or in areas where the real estate is significantly valuable.
Last year, the company bought some smaller stores like Sears Hometown, which sells household items and tools. Transform also sold DieHard battery to Advance Auto Parts, and it owns Sears Home Improvement, Sears Parts Direct and Sears Home Services.
Chief Financial Officer Richard Galanti said the company’s procurement team is “working, in some cases, around the clock to procure supplies for both existing suppliers and from other sources where possible” in an effort to keep up with demand.
Both the upward demand and issues with procuring inventory from China means the company runs out of items daily.
There’s also the issue of manufacturing companies lowering output.
“But again,” said Galati, “it’s improving, and this still has a little ways to go.”