The Valspar Corporation has announced a long-term strategic supply relationship with Ace Hardware Corporation under which Valspar will manufacture and supply Ace-branded paint products as well as make a comprehensive line of Valspar- branded paints available to more than 4,000 Ace retail locations in the United States. In addition, the two companies announced that Valspar has acquired Ace Hardware’s paint manufacturing assets, including two manufacturing facilities located near Chicago.
“Our agreement with Ace extends the Valspar brand while further strengthening and diversifying Valspar’s portfolio of industry-leading consumer paints in the North American market,” said Gary Hendrickson, chairman and chief executive officer of Valspar. “This new business also positions Valspar well for further growth as the U.S. housing market continues to recover.”
The relationship combines Ace’s in-store service model and neighborhood store footprint with Valspar’s national paint brand, manufacturing and distribution expertise, and technology. Ace customers can expect the same quality and performance from Ace-branded paint products while also benefitting from Valspar’s color expertise, enhanced sales support for retailers and a competitively priced product assortment.
“Ace Hardware is pleased to enter into a long-term supply relationship with Valspar,” said Ray Griffith, chief executive officer, Ace Hardware Corporation. “Our relationship with Valspar will allow Ace to create an enhanced customer experience that generates more paint sales for our valued owners. We have ambitious goals for our paint category, and this step puts Ace on the path to growing market share in liquid paint and increasing revenue opportunities for all Ace retailers.”
Valspar will immediately begin manufacturing and distributing Ace’s existing portfolio of Ace-branded paint products. Over the next year, Ace and Valspar will collaborate with retail owners to enhance their paint departments. Introduction of Valspar paint products is expected to begin in the fall of 2013. Ace will retain ownership of its existing paint brand trademarks, including Clark+Kensington and Ace Paint, but Valspar will manufacture Ace’s product lines exclusively for the retailer.
Valspar Announces Strategic Paint Supply Relationship with Ace Hardware and Acquisition of Retailer’s Paint Manufacturing Assets
Published January 3, 2013
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