RONA and private equity firm acquire All-Fab Group
Sycamore Partners, a private equity firm specializing in consumer, distribution and retail-related investments, together with RONA inc., have shared news of the acquisition of All-Fab Group (AFG), one of the largest building solutions providers across Western Canada.
AFG has served the needs of building contractors, building owners and dealers across Western Canada for over 50 years.
The transaction provides AFG with additional resources to accelerate growth and invest in products and capabilities to better serve developers, builders, and families across Western Canada and the United States.
Closing terms for the transaction were not disclosed.
In response to the deal, Canada's Competition Bureau struck an agreement with RONA Inc. to address competition concerns related to its proposed acquisition. The bureau felt that the proposed transaction would caused diminished competition in the design, supply and manufacturing of roof and floor trusses used in housing construction in the Saskatchewan region. The bureau conveyed the loss of rivalry between RONA and All-Fab would result in higher prices and fewer options for customers in the area.
To resolve the bureau's concerns, RONA agreed to sell a truss manufacturing facility it owns in Martensville, Saskatchewan. The sale will be made to an independent purchaser to be approved by the Commissioner of Competition. The bureau shared that it's satisfied that the sale will resolve the competition concerns that could result from the proposed transaction.
