- Lowe’s Canadian retail business operates under such brands as Rona, Lowe’s Canada, Réno-Dépôt and Dick’s Lumber
- Lowe’s Canada and Rona will operate as a standalone company based in Quebec
- Lowe’s acquired Rona in 2016 in a deal valued at C$3.2 billion
Lowe’s Companies this week said it has entered into a definitive agreement to sell its Canadian retail business to Sycamore Partners. The purchase price is $400 million in cash with a performance-based deferred consideration.
The deal is expected to close in early 2023.
The Lowe’s Canadian business, headquartered in Boucherville, Quebec, operates or services approximately 450 corporate and independent affiliate dealer stores under different brands. The latter include Rona, Lowe’s Canada, Réno-Dépôt and Dick’s Lumber.
“We are honored to partner with Lowe’s to establish Lowe’s Canada and Rona as a standalone company headquartered in Boucherville, Quebec,” said Stefan Kaluzny, Managing Director of Sycamore Partners, in a statement. “We look forward to working with the company’s management team to build on its 83-year history as a leading Canadian home improvement business serving families, builders, and contractors in their communities across the country.”
Lowe’s acquired Rona in 2016 in a deal valued at C$3.2 billion. Rona’s then largest shareholder, Caisse de dépôt et placement du Québec, supported the deal.
Sycamore Partners is a private equity firm based in New York, investing in companies in the consumer, distribution and retail-related sectors. It has about $10 billion in total committed capital.
Goldman Sachs & Co is serving as financial adviser to Lowe’s, and Cleary Gottlieb Steen & Hamilton and Stikeman Elliott are serving as legal counsel. RBC Capital Markets is serving as financial adviser to Sycamore Partners, and Kirkland & Ellis and Blake, Cassels & Graydon are serving as legal counsel.