Grocery wholesaler Metcash plans to take its competitive push against the supermarket giants into the hardware sector by taking full control of the Mitre 10 brand.

Metcash is a distributor of groceries and liquor to independent retailers such as IGA, Franklins and Cellarbrations, and holds a 50.1 per cent stake in Mitre 10.

It said on Wednesday it would buy the remainder of Mitre 10 if the hardware chain’s financial performance for the year to June 30 met expectations.

Already competing with Coles and Woolworths in the grocery sector, the acquisition commits Metcash to tackling them head-on in hardware.

Wesfarmers, the owner of Coles, owns the 202-store Bunnings business, while Woolworths is quickly building its Masters hardware chain.

The Mitre 10 business includes over 400 Mitre 10 and True Value stores, plus distribution to another 400 non-branded independent hardware stories.

Its sales in the first half of the fiscal 2012 rose by 6.5 per cent to $427 million due to the addition of new stores and its highly visible sponsorship of The Block television series, Metcash said recently.

“We are delighted to be able to acquire the balance of Mitre 10, which has proven to be a highly strategic and value-adding business pillar,” chief executive Andrew Reitzer said on Wednesday.

He also confirmed Metcash would meet its guidance of low- to middle-digit underlying earnings growth when it reports its financial results for the year to April 30.

Metcash reported underlying earnings of $256.2 million in the previous fiscal year.

But the company’s bottom line will be affected by one-off charges from its current restructure, expected to total between $34 million and $43 million.

Metcash shares lost 15 cents, or 3.8 per cent, to $3.82.