Robinsons Retail acquires 67% of Builders hardware chain
Robinsons Retail Holdings, Inc., through its subsidiary Robinson’s Handyman, Inc., recently signed a Memorandum of Agreement allowing it to acquire a 67 percent stake in A.M. Builders’ Depot, a Visayas-based builders hardware chain. A.M. Builders’ Depot operates 17 stores with total gross selling area of approximately 35,000 square meters in Cebu, Iloilo, Bacolod, Dumaguete and other key cities in the Visayas region.
A.M. Builders’ Depot commenced operations in 1998 with tiles, bathroom fixtures, lumber, and roofing materials as its core products.
Robinsons Retail ACQUISITION – Shown (from left) at the signing of the acquisition agreement are:: Atty. Gilbert Millado, Jr., Gen. Counsel, Robinsons Retail Holdings, Inc. (RRHI); Wilfred Co, Vice Chairman, Robinsons Handyman, Inc.; Robina Y. Gokongwei-Pe, President and COO, RRHI; Arsenio P. Rafael III, President, A.M. Builders’ Depot; Christian A. Rafael, Corporate Secretary, A.M. Builders’ Depot; Arsenio A. Rafael IV, Treasurer, A.M. Builders’ Depot.
The acquisition places Robinsons Retail in a unique position, giving Robinsons Retail a strong presence in both the DIY (do-it-yourself) hardware and builders (big box) hardware retail formats.
The purchase will promote greater synergy with Robinsons Retail’s existing DIY stores, enabling it to tap a wider reach of customers with Handyman Do it Best, True Value and Howards Storage World catering mostly to household owners and A.M. Builders’ Depot targeting residential and building contractors.
Robinsons Retail’s DIY business will make available to A.M. Builders’ Depot its wide range of quality home improvement products. Moreover, A.M. Builders’ Depot stores have an appliance section which can be complemented by Robinsons Appliances’ offering of a wide selection of home and kitchen appliances as well as audio and video products.
“I am very pleased with our partnership with the founders of A.M. Builders’ Depot and have utmost respect for their wealth of experience. The acquisition will be a good addition to our retail portfolio as it will serve another segment of the fast growing retail market of the country,” said RobinaGokongwei-Pe, President and COO of Robinsons Retail Holdings, Inc.
Arsenio Rafael III, President of A.M. Builders’ Depot commented, “It is a great honor to become part of the Robinsons Retail conglomerate. The synergy with Robinsons Retail’s DIY expertise in modern hardware retailing, its extensive store network, strong balance sheet and our 17- year experience and dedication in the finishing construction materials industry will ensure the success of this partnership. The possibilities for this new partnership are endless as we improve and expand our product offerings. Building one’s dream home will now become a reality.”
Robinsons Retail’s DIY business is comprised of three formats: Handyman Do it Best, True Value and Howards Storage World, which generated a 14.5% increase in net sales to P7.1 billion in 2013 on robust same store sales growth of 6%. This accounted for 10.5% of the group’s P67.2 billion consolidated net sales. As of end-March 2014, Robinsons Retail’s DIY segment had a total of 132 stores.
Robinsons Retail currently operates 10 retail formats under six business segments: supermarkets (Robinsons Supermarket), department stores (Robinsons Department Store), DIY stores (Handyman Do it Best, True Value and Howards Storage World), convenience stores (Ministop), drugstores (South Star Drug and Manson Drug) and specialty stores (from consumer electronics and appliances retailer Robinsons Appliances to toys retailer Toys “R” Us, one price point retailer Daiso Japan and international fashion brands such as Topshop, Topman and Dorothy Perkins and international cosmetics brands such as Shiseido and Benefit). As of end-March 2014, the group had 1,145 stores located all over the country.
Source: Manila Bulletin