For US$400 million plus a performance-based deferred compensation, Lowe’s Companies, Inc. is selling its Canadian retail business to New York-based private equity company Sycamore Partners.
Based in Boucherville, Quebec, the Canadian division of Lowe’s runs or provides support for about 450 corporate and independent affiliate dealer stores operating under a variety of brands, including Lowe’s, RONA, Reno-Depot, and Dick’s Lumber.
CEO, President, and Chairman of Lowe’s Marvin R.
According to Ellison, the sale is a crucial step toward streamlining the Lowe’s business strategy.
The merger, which is anticipated to be finalised in early 2023, will turn RONA and Lowe’s Canada into a stand-alone business with headquarters in Quebec.
In 2016, Lowe’s acquired RONA Inc. in a deal worth $3. 2 billion Canadian, or roughly $2. 4 billion US, which the company hailed as a crucial step in accelerating its expansion strategy.
The company expects its Canadian retail division to account for about 7% of its 2022 sales.
To a private U.S. equity firm, Lowes is selling its Canadian retail operations, including its RONA outlets.
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