Renovation chain Lowe’s announced Thursday the sale of all of its Canadian operations, including the Rona and Réno-Dépôt chains. (Photo: The Canadian Press)
Six years after being taken over by the American company Lowe’s, the Rona and Réno-Dépôt banners are changing hands again.
Renovation chain Lowe’s announced on Thursday the sale of all of its Canadian operations, including the Rona and Réno-Dépôt chains, to New York private equity firm Sycamore Partners for a cash consideration of $400 million (i.e. about $549.8 CAN- Dollars) known M) and a deferred consideration calculated based on future performance.
Lowe’s bought Rona in 2016 for $2.3 billion. On Thursday, the company said it expects to take a non-cash pretax impairment charge of about $2 billion related to its retail operations. Canadian companies in the third quarter of 2022.
Marvin R. Ellison, chairman, president and CEO of Lowe’s, said in a news release that the sale includes its Canadian operations – which include approximately 450 corporate stores and independent subsidiary stores under various brands, including Lowe’s, Rona, Réno-Dépôt and Dick’s Lumber – is “an important step in simplifying Lowe’s business model.”
“While this business represents approximately 7% of our full-year 2022 revenue guidance, it also represents a dilution of our full-year 2022 operating margin guidance by approximately 60 basis points,” says Marvin R. Ellison.
Stefan Kaluzny, managing director of Sycamore Partners, claims the company wants to make Lowe’s Canada and Rona an independent company that would retain its headquarters in Boucherville. The Rona network has more than 375 points of sale.
“We look forward to working with the leadership team of an organization with no less than 83 years of history as Canada’s leading home improvement company, serving families, builders and entrepreneurs in communities across the country,” says Mr. Kaluzny.
The transaction is expected to close in early 2023, subject to customary closing conditions and receipt of regulatory approvals, it said.
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