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RONA Agrees to Sell Commercial and Professional Market Division to EMCO for C$215M

RONA plans to focus on its core.

RONA Inc. (TSX: RON, RON.PR.A), Canadian distributor and retailer of hardware, renovation and gardening products, has agreed to sell its Commercial and Professional Market division specializing in plumbing, heating, ventilation and air conditioning (HVAC) systems to Talisker Plumbing Corp., a division of EMCO Corp. The transaction is expected to net RONA about $215 million.

The Commercial and Professional Market division was created when RONA acquired Noble in 2007. With 1,400 employees in Ontario, Quebec and British Columbia, the Commercial and Professional Market division has been operating under the Noble, Don Park, MPH Supplies, Boutique Eaudace and Boutique Plomberie Décoration 25 banners.

RONA said it is divesting the business to focus on its core businesses.

 “Since 2007, we’ve been working with a group of skilled and dedicated employees who have helped build this business. We take this opportunity to sincerely thank them for their commitment. After all these years, we know we can count on them for their continued support in this transition,” said Dominique Boies, RONA’s Executive Vice President and Chief Financial Officer.

EMCO, based in London, Ontario, is a distributor of products for the construction industry. EMCO offers products in the categories of plumbing and heating, waterworks, industrial, oilfield supply, irrigation, fire protection and HVACR through its locations across Canada.

RONA operates a network of 800 corporate, franchise and affiliate retail stores of various sizes and formats under different banners, and a network of 14 hardware and construction materials distribution centers. The RONA store network generates consolidated revenues of $4.9 billion.

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