Mooresville, N.C. and Boucherville, Quebec — Lowe’s Companies, Inc. and RONA inc. have entered into a definitive agreement under which Lowe’s is expected to acquire RONA for C$3.2 billion (U.S. $2.3 billion). Together, Lowe’s Canada and RONA stores will create Canada’s leading home improvement retailer.
The transaction has been unanimously approved by the boards of directors of Lowe’s and RONA and is supported by the management teams of both companies.
“We are very excited about this transaction as it leverages the strengths of two great companies, positioning us for continued success in Canada’s over C$45 billion and growing home improvement industry. The strategic rationale of this transaction, for both companies, is very compelling,” says Robert A. Niblock, Lowe’s chairman, president and CEO.
Niblock continues: “Importantly, the transaction also provides Lowe’s with entry into Quebec, where RONA is the market leader and we have no presence. We have committed to maintaining RONA’s operations in Boucherville, where we will headquarter our Canadian businesses, and plan to continue to operate RONA’s multiple retail banners and distribution services to independent dealers.”
RONA’s chairman, Robert Chevrier, adds: “We believe the time is right to take the next step in the evolution of the RONA family. The team at Lowe’s has presented us with an excellent plan that enables our company to maintain its brand power while at the same time leveraging Lowe’s global presence to build upon and expand our reach.”
The Canadian operations will be led by Sylvain Prud’homme, president of Lowe’s Canada. Lowe’s believes there is potential to double operating profitability in Canada over 5 years.
Lowe’s has more than 1,845 home improvement and hardware stores in the United States, Canada and Mexico.
RONA inc. is a major Canadian retailer and distributor of hardware, building materials and home renovation products. RONA operates a network of close to 500 corporate and independent affiliate dealer stores.
SOURCE: Lowe’s Companies, Inc.