February 3, 2016 – Lowe’s Companies Inc. and Rona Inc. have entered into a definitive agreement under which Lowe’s is expected to acquire all of the issued and outstanding common and preferred shares of Rona in a deal valued at $3.2 billion.
“We are very excited about this transaction as it leverages the strengths of two great companies, positioning us for continued success in Canada’s over $45-billion-and-growing home improvement industry,” said Robert A. Niblock, Lowe’s chair, president and CEO.
A very important benefit of the deal, added Niblock, is that it “provides Lowe’s with entry into Quebec, where Rona is the market leader and we have no presence”.
“We have committed to maintaining Rona’s operations in Boucherville where we will headquarter our Canadian businesses, and plan to continue to operate Rona’s multiple retail banners and distribution services to independent dealers,” Niblock said.
But not everyone is fist-pumping.
“Managers at Lowe’s need to know that we’ll be very vigilant regarding the more than 2000 Teamster jobs at Rona,” warned Serge Bérubé, the president of Local Union 1999, conceding, however, that “There is no indication, at this stage, that this transaction will have an impact on Rona’s activities.”
The Canadian operations will be led by Sylvain Prud’homme, president of Lowe’s Canada.