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.”
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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.”
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