Costco Buys Last Mile Services Business From Sears For $1 Billion

Costco has purchased Innovel Solutions, the last mile delivery and installation business owned by Sears holding company Transform Holdco (TFCO), for $1 billion. Key components of the purchase agreement include:

● A long-term commercial arrangement for Costco to provide TFCO warehousing, delivery and installation services to Sears and Kmart members;
● Costco retaining more than 1,500 Innovel employees on a go-forward basis; and
● A long-term commercial agreement with Costco leveraging TFCO’s Service Live platform to source technicians for complex installations across the country.

TFCO currently owns or leases more than 500 retail properties and supporting facilities, and the company intends to focus more intently on its Kenmore and DieHard brands. Advance Auto Parts bought the DieHard brand for $200 million in December 2019, but the purchase agreement allowed TFCO to retain DieHard branded non-automotive categories as a royalty-free licensed business in perpetuity. TFCO plans to build these brands globally in partnership with manufacturers, distributors and retailers.

The Costco purchase of Innovel will allow TFCO to repay all of its non-real estate debt, as well as free up TFCO to pursue “other transformative actions to fully leverage its core assets and capabilities to realize maximum value for all stakeholders,” according to a company statement.


Featured Event

Join the retail community as we come together for three days of strategic sessions, meaningful off-site networking events and interactive learning experiences.



Access The Media Kit


Access Our Editorial Calendar

If you are downloading this on behalf of a client, please provide the company name and website information below: