The Home Timber and Hardware chain has been sold to Mitre10 owner Metcash for $165m.
The sale brings together under one group the two rivals in the home improvement arena.
In order to satisfy the Australian Competition and Consumer Commision’s concerns, Metcash agreed that independent store owners would be able to source products from outside its supply chain Inside Retail reports.
“The increased scale of the combined Mitre 10 and Home Timber and Hardware businesses, together with the opportunity to realise significant efficiencies, will enable us to be more competitive and deliver a better outcome for both our hardware retailers and their customers,” Metcash CEO Ian Morrice said in a statement.
“We are passionate about supporting successful independents and contributing to the growth of a vibrant independent hardware sector in the long term.”
Woolworths’ off-loading of the profitable business is part of its strategy to exit the home improvement sector, with the loss-making Masters chain still a headache for the supermarket group.