Kalkine: Metcash Merger Creates Unified Hardware Powerhouse in ASX200 Landscape

June 10, 2025 04:38 PM AEST | By Team Kalkine Media

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Kalkine: Metcash Merger Creates Unified Hardware Powerhouse in ASX200 Landscape — Image source: Shutterstock

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Highlights

Metcash combines hardware units into one strong group

New leadership and structure for growth focus

Positive FY25 earnings expected amid transition

Metcash Limited (ASX:MTS) has announced a strategic merger of its two key hardware operations—Independent Hardware Group (IHG) and Total Tools Holdings—into a single entity now known as the Total Tools and Hardware Group. This consolidation brings together respected Australian retail brands such as Mitre 10, Home Hardware, and Total Tools under one banner, with Scott Marshall appointed as the head of the newly formed division.

This move has been described as a long-term vision since Metcash (ASX:MTS) initially acquired Total Tools in 2020. According to company leadership, the merger is a timely response to current market dynamics and is designed to position the business and its franchise partners for long-term advantage and readiness as market conditions improve.

Doug Jones, CEO of Metcash, commented on the significance of the merger, highlighting it as a critical step toward enhancing resilience and accelerating opportunities in the hardware retail sector. By aligning two complementary business models, the company aims to create a stronger platform to navigate the evolving landscape and to benefit from potential future industry tailwinds.

The merger also comes with changes in leadership. Richard Murray, CEO of Total Tools Holdings, will step down from his role and assist with a smooth transition. His exit marks a pivotal point in the company's integration efforts and transformation journey.

Financially, Metcash is maintaining a steady course. The unaudited figures for the financial year ended 30 April 2025 (FY25) suggest that the company is likely to report an underlying profit after tax between $273 million and $277 million—slightly above market expectations. The full audited results are set to be disclosed on Monday, 23 June 2025. This performance continues to strengthen Metcash's position among ASX dividend stocks, appealing to income-focused investors.

As Metcash positions itself more competitively within the ASX200 index, the consolidation of its hardware operations signals a broader ambition: to deliver scale, efficiency, and consistent performance across its retail network. With a stable outlook and streamlined leadership, the business transformation could offer new momentum within Australia’s retail supply chain.

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