Lowes selling Canadian retail business, including RONA stores, to private U.S. equity firm
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By Staff The Canadian Press
Posted November 3, 2022 6:10 pm
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Lowe’s Companies, Inc. is selling its Canadian retail business to New York-based private equity firm Sycamore Partners for US$400 million plus a performance-based deferred consideration.
Lowe’s Canadian arm is based in Boucherville, Quebec, and operates or services around 450 corporate and independent affiliate dealer stores under a number of banners, including Lowe’s, RONA, Reno-Depot and Dick’s Lumber.
Lowe’s chairman, president and CEO Marvin R. Ellison said the sale is an important step toward simplifying the Lowe’s business model.
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The deal, expected to close in early 2023, will establish Lowe’s Canada and RONA as a standalone, Quebec-headquartered company.
Lowe’s bought RONA Inc. in 2016 in a deal valued at $3.2 billion Canadian, or about US$2.4 billion, that at the time it said was a key step in accelerating its growth strategy.
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The company’s Canadian retail business makes up around seven per cent of the company’s 2022 sales outlook.
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