Page 9 - HW 0822

TUMU joins Team Blue, will remain TUMU
hard news
TUMU will be keeping its name and new brand, certainly for
the next 2-3 years, says Fletcher Distribution.
The Commerce Commission finally gave the OK for Fletcher Distribution (FDL) to acquire TUMU’s six stores and frame & truss plant at the end of last month
Commerce Commission Chair
Anna Rawlings said of the findings: “We are satisfied that the merged entity will be constrained by competition from CARTERS and Mitre 10 in relation to the supply of building products to trade customers in the Wairarapa and Hawke’s Bay, and Bunnings in the Wairarapa as well.
“Further, we are satisfied that the acquisition, and TUMU’s recent exit from the ITM group, is unlikely to significantly impact ITM’s ability to compete for national customers such as group home builders.
“The acquisition is also unlikely to increase FDL’s incentive or ability to foreclose rival merchants’ access to key building supplies.
“Finally, we are satisfied that competition in the manufacture and supply of frame & truss is unlikely to be significantly impacted, given the limited pre-merger competition between the parties and the presence of several other manufacturers and suppliers.”
With the merger given the green light, the missing piece of the jigsaw was how FDL would treat its new assets brand-
wise after the acquisition goes live on 1 September.
Speaking at PlaceMakers’ conference in Christchurch on 9 August, Fletcher Distribution CE Bruce McEwen revealed TUMU would remain TUMU for some time to come.
“We love the TUMU brand,” he said at a suppliers’ session.
“It’s got a really strong heritage and legacy,” he said, adding there were “a lot of good people in the business.”
As a result, aiming for minimal disruption of staff and customers, FDL will keep the TUMU brand for the next 2-3 years and then revisit.
FDL’s immediate objective this year will be to integrate TUMU with PlaceMakers’ systems.
All of TUMU group’s businesses were rebranded following its resignation from ITM.
www.tumu.co.nz
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