Lowe’s Completes $400M Sale of Canada Retail Unit to Sycamore - Modern Distribution Management

Log In

Lowe’s Completes $400M Sale of Canada Retail Unit to Sycamore

The deal — originally announced in November 2022 — allows for the unit to go forward operating as RONA Inc.

On Feb. 3, home improvement retailer Lowe’s Companies, Inc. said it has completed the previously reported sale of its Canadian retail business to private equity firm Sycamore Partners for $400 million.

The deal was first announced Nov. 3, 2022. Goldman Sachs & Co. LLC served as financial adviser to Lowe’s.

“With the closing of this transaction, we are now singularly focused on the transformation of our U.S. home improvement business, where we have a great opportunity to simplify Lowe’s operations and take market share,” said Marvin R. Ellison, Lowe’s Chairman, President and CEO. “Our simplified business model will support our efforts to improve operating margin and ROIC, while delivering sustainable value to our shareholders. I would like to extend my appreciation to the entire Canadian team for their commitment to serving our customers, and I wish them the best as they move forward under new ownership.”

MDM’s M&A Virtual Summit, to be held Feb. 22-23, has something to offer for any distributor on the dealmaking spectrum. We’ll cover the current state of M&A; how to maximize valuation; integration do’s and don’ts; ESOPs; the culture side of the M&A process; and more. Get details and register here.

Lowe’s Canadian retail business will now operate under the name RONA inc., according to a news release from Sycamore Partners.

“Today’s announcement represents the beginning of a new chapter in RONA’s long and rich history,” said Tony Cioffi, President of RONA inc. “With Sycamore’s support and expertise, we will continue to provide outstanding service and products for our customers’ home improvement and construction projects.”

Headquartered in Boucherville, Québec, RONA will continue to operate or serve approximately 450 corporate and independent affiliate dealer stores under several names, including RONA, Lowe’s, Réno-Dépôt and Dick’s Lumber.

“We are excited to announce that RONA is once again an independent company headquartered in Boucherville, Quebec,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We are honored that Lowe’s has entrusted Sycamore Partners to lead RONA into its next chapter and build upon RONA’s 84-year history serving communities across Canada. We look forward to working with RONA’s 26,000 associates and over 200 dealer partners to meet the home improvement needs of Canadian families, builders, and contractors.”

See MDM’s Investment Bank Directory for a rundown of the key investment banks and advisory firms in the distribution sector.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.