Lowe's Completes RONA Acquisition For $2.4 Billion
Lowe's Companies, Inc. (NYSE: LOW) revealed Friday that it completed its previously announced acquisition of RONA inc. ("RONA"). According to the company, the transaction was worth $2.4 billion or C$3.2 billion.
Lowe's said the acquisition represented a key step in speeding up its growth strategy. The company believes that it created one of the biggest home improvement retailers in Canada, with 539 store locations. Also, the company expects about C$6 billion pro forma revenues from its Canadian operations. As a result, Lowe's Canada, as well as, RONA was well-placed for continued success serving Canada's more than C$45 billion home improvement market, which is growing.
The American firm's Chief Development Officer and President of International, Richard Maltsbarger, said, "We are very pleased to welcome RONA and its talented team into the Lowe's family. This transaction significantly expands our presence in the Canadian market and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to shareholders, customers, suppliers, employees and the communities we serve. We look forward to capitalizing on the significant potential created by bringing together our two great companies."
Similarly, RONA's former president and CEO, Robert Sawyer, added, "I am confident that RONA will be in good hands as part of Lowe's and will have new opportunities and resources to grow its brands and build upon its heritage, providing Canadians with trusted products and advice to build and renovate their homes in total confidence. This is an excellent next step for our people, our partners, our customers and our former shareholders."
Lowe's said that the Canadian operations were led by Sylvain Prud'homme, president and CEO of Lowe's Canada. He also commented saying "With the closing now behind us, we have hit the ground running and are focused on assuring a smooth transition and taking full advantage of the outstanding opportunities we see as one of Canada's leading home improvement retailers."
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