Lowe's wraps up RONA deal

Lowe's and RONA have officially sealed the deal on the former retailer's acquisition of the latter, with a final closing price of C$3.2 billion (US$2.4 billion).

With RONA under its wing, Lowe's Canada is now one of the largest home improvement retailers in the country, with 539 store locations and pro forma revenues from Canadian operations of approximately C$6 billion.

"We are very pleased to welcome RONA and its talented team into the Lowe's family," said Richard Maltsbarger, Lowe's chief development officer and president of international. "This transaction significantly expands our presence in the Canadian market and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to shareholders, customers, suppliers, employees and the communities we serve.  We look forward to capitalizing on the significant potential created by bringing together our two great companies."

As previously announced, Lowe's will be headquartering the Canadian businesses in Boucherville, Quebec. RONA's multiple retail store banners will remain intact, as will the vast majority of its current employees and key executives.

Lowe's will step up its distribution services to dealer owners, and it remains committed to RONA's local and ethical procurement strategy.

Robert Sawyer, former president and CEO of RONA, added, "I am confident that RONA will be in good hands as part of Lowe's and will have new opportunities and resources to grow its brands and build upon its heritage, providing Canadians with trusted products and advice to build and renovate their homes in total confidence.  This is an excellent next step for our people, our partners, our customers and our former shareholders."   

RONA is adding 496 corporate and dealer-owned stores in a number of complementary formats to the Lowe's network, as well as nine distribution centers.

The Canadian operations are led by Sylvain Prud'homme, president and CEO of Lowe's Canada. "We are delighted to join forces with RONA's experienced team to take our businesses to the next level," said Prud'homme. "With the closing now behind us, we have hit the ground running and are focused on assuring a smooth transition and taking full advantage of the outstanding opportunities we see as one of Canada's leading home improvement retailers."