Total Tools Holdings – majority stake sale to Metcash Limited (ASX: MTS)
Miles Advisory Partners advised Total Tools on the sale of a majority stake to Metcash Limited (ASX: MTS).
Transaction Details
Sector
Consumer
Miles Role
Sell-side advisor to Total Tools
Deal Type
Business Divestment
Year Completed
2020
Contacts for this Transaction
Lloyd Way
Managing Director
Rohan Manikath
Managing Director
Overview
- Total Tools is the franchisor to Australia's largest professional tools retail network, with more than 80 bannered stores nationally at the time of the transaction and over 30 years of operating history serving professional tradespeople
- Miles was engaged to advise Total Tools, running a competitive process on behalf of the franchisor shareholders, who each held a small individual interest in the business
- Metcash acquired an initial majority interest, with a pathway to full ownership, establishing Total Tools as a third pillar within Metcash's hardware business alongside Mitre 10 and Home Hardware
- For the Total Tools shareholders, the sale of a majority stake allowed access to future upside of continued growth in the Total Tools network
Industry Context
The professional tools segment is attractive for its loyal tradesperson customer base, recurring consumable demand and structural support from construction and infrastructure activity. A staged majority acquisition allows the acquirer to secure control while retaining founder and management alignment through a transition. The deal exemplifies the consolidation of fragmented, founder-owned Australian retail networks under larger listed owners.
Further information on this transaction is available at: Total Tools / Metcash Press Release
