BOUCHERVILLE, QC — Revisiting it's 2012 takeover attempt, home improvement giant Lowe’s Companies will now acquire Canada's RONA inc. and merge it with Lowe's Canada to create a C$5.6 billion giant that overshadows The Home Depot Canada. Lowe's does $56 billion in annual sales overall.
Lowe’s will pay C$20 per share in cash in a deal that is already approved by both boards - sparing the turmoil surrounding a 2012 attempt by Lowe's to buy RONA, whose boiard stonewalled the deal. Likewise RONA's board has received an opinion from Scotia Capital Inc. that the deal is a good one for shareholders.
Perhaps most importantly, “The transaction also provides Lowe’s with entry into Quebec, where RONA is the market leader and we have no presence," admitted Lowe’s CEO Robert A. Niblock. Overall, Lowe's estimates Canada’s home improvement industry to be over C$45 billion and growing .Lowe’s says it has identified over C$1 billion of opportunities to increase revenue and operating profitability in Canada.
The Canadian operations will be led by Sylvain Prud’homme, president of Lowe’s Canada. RONA’s Chairman, Robert Chevrier, says “The team at Lowe’s has presented us with an excellent plan that enables our company to maintain its brand power while at the same time leveraging Lowe’s global presence to build upon and expand our reach. With commitments made by Lowe’s to our employees, potential new markets for Canadian manufacturers and product offerings for our independent dealers, this transaction presents the ideal opportunity for the continued growth of our company."
Lowe's agreed as part pof the deal tocontinue RONA’s local and ethical procurement strategy and potentially expand relationships both Lowe’s and RONA have developed with Canadian manufacturers and suppliers, as well as to keep RONA's multiple retail store banners and to headquarter that part of the business in Boucherville, Quebec, and to continue to support Canadian communities through RONA and Lowe’s charitable and environmental initiatives.
Lowe’s et RONA ont annoncé conjointement qu’elles étaient parvenues à une entente en vertu de laquelle Lowe’s allait acquérir RONA, créant ainsi la plus importante chaîne de détaillants en rénovation du Canada. L’entente est fondée sur des motifs stratégiques indiscutables pour les deux sociétés : le pouvoir des marques de premier plan de RONA et ses emplacements devraient ajouter un complément au réseau mondial et à la portée de Lowe’s. Les deux compagnies estiment que cette transaction sera à l’avantage des actionnaires, des détaillants, des employés, des clients et des communautés au Canada.
Have something to say? Share your thoughts with us in the comments below.