ToughBuilt Industries Announces South American Distribution Agreement With Sodimac

Rhea-AI Summary

ToughBuilt Industries (NASDAQ: TBLT; TBLTW) announced a distribution agreement with Sodimac, the leading home improvement supplier in South America, initiating distribution in Peru and Colombia with 15 ToughBuilt products. Founded in 1952, Sodimac operates over 250 stores across multiple Latin American countries. The global hand tools market is valued at $17.5 billion, with Latin America showing a growth rate of 3.9% CAGR projected through 2027. This partnership aims to enhance ToughBuilt's brand visibility and revenue in the region.

Positive

• Partnership with Sodimac expands ToughBuilt's market presence in South America.
• Access to a large customer base through Sodimac's 250+ retail locations.
• Potential revenue growth from a projected 3.9% CAGR in the Latin American hand tools market.

Negative

• None.

IRVINE, Calif., Oct. 19, 2022 (GLOBE NEWSWIRE) -- ToughBuilt Industries, Inc. ("ToughBuilt") (NASDAQ: TBLT; TBLTW), is pleased to announce that the Company has reached a comprehensive distribution agreement with Sodimac, the largest home improvement and construction supplier in South America; beginning with Peru and Colombia with 15 ToughBuilt SKUs.

Founded in Chile in 1952, Sodimac is a subsidiary of the Falabella group and operates across Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, with over 250 storefronts, contributing to Falabella’s revenues.

Latin America represents a large portion of the $17.5Bn USD Global Hand Tools Market, with a projected regional growth of 3.9% CAGR through 2027¹. LATAM customers will now find ToughBuilt products in Sodimac’s retail locations through a branded wall display featuring some of the best-selling SKUs in the Company’s line of innovative tools.

Michael Panosian, Chief Executive Officer of ToughBuilt, stated, “As we increase our presence in marketplaces around the globe, Sodimac’s retail locations provide further opportunity for us to expand ToughBuilt’s brand awareness and overall revenue success through the capture of additional Latin American market share.”

1. https://www.globenewswire.com/news-release/2022/10/10/2530924/0/en/Global-Hand-Tools-and-Accessories-Market-to-Reach-23-Billion-by-2027.html
   

ABOUT TOUGHBUILT INDUSTRIES, INC:
ToughBuilt is an advanced product design, manufacturer, and distributor with emphasis on innovative products. Currently, we are focused on tools and other accessories for the professional and do-it-yourself construction industries. We market and distribute various home improvement and construction product lines for both the do-it-yourself and professional markets under the TOUGHBUILT brand name, within the global multibillion dollar per year tool market industry. All of our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line includes three major categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Our mission is to provide products to the building and home improvement communities that are innovative, of superior quality derived in part from enlightened creativity for our end users while enhancing performance, improving well-being and building high brand loyalty. Additional information about the Company is available at: https://www.toughbuilt.com/.

FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the impact of the worldwide COVID-19 pandemic and government actions, on our business, (ii) supply chain disruptions, (iii) market acceptance of our existing and new products, (iv) delays in bringing products to key markets, (v) an inability to secure regulatory approvals for the ability to sell our products in certain markets, (vi) intense competition in the industry from much larger, multinational companies, (v) product liability claims, (vii) product malfunctions, (viii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (ix) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (x) our reliance on single suppliers for certain product components, (xi) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xii) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Investor Relations Contact:
KCSA Strategic Communications
David Hanover
toughbuilt@kcsa.com

Source: ToughBuilt Industries, Inc

FAQ

What is the significance of ToughBuilt's distribution agreement with Sodimac?

The agreement allows ToughBuilt to penetrate the South American market, increasing brand exposure and potential revenue through Sodimac's extensive retail network.

Which countries will ToughBuilt products be available in through Sodimac?

ToughBuilt products will initially be available in Peru and Colombia.

What is the current market size of the global hand tools market?

The global hand tools market is valued at $17.5 billion with expected growth in Latin America.

What are the expectations for ToughBuilt's revenue growth in Latin America?

ToughBuilt anticipates revenue growth with a projected 3.9% CAGR in the Latin American hand tools market through 2027.

How many products will ToughBuilt distribute through Sodimac?

ToughBuilt will distribute 15 SKUs through Sodimac's retail locations.