Sears Sells DieHard Brand to Advance Auto Parts for $200M
Advance Auto Parts is acquiring Sears’ DieHard brand for $200 million in cash, CNBC reported. DieHard is known for its car batteries, and under a supply agreement, Transformco, Sears’ parent brand, will still have the right to sell some DieHard items in Sears stores. Transformco will also have an exclusive royalty-free perpetual license from Advance Auto Parts to develop and market DieHard products in nonautomotive categories, such as sporting goods, lawn and garden, and work wear.
Total Retail's Take: This deal appears to be a win-win for both companies. Since Sears went bankrupt in 2018, the retailer has been trying to turnaround the business, and selling DieHard gives the company a much needed infusion of capital. According to CNBC, Advance Auto Parts has been looking at ramping up its offerings in the battery sector for a few years, and DieHard has the highest brand awareness in that product category. Furthermore, the exclusive license ensures Sears will not have to disassociate with the DieHard brand entirely, a key clause in the sale agreement.