Sycamore Closes Acquisition of Lowe’s Canada

Sycamore Partners, the private equity firm specializing in retail, consumer, and distribution-related investments based here, has completed its acquisition of Lowe’s Canadian retail business, which will now operate under the name RONA inc.

With headquarters in Boucherville, Québec, RONA operates or services approximately 450 corporate and independent affiliate dealer stores under several banners, including RONA, Lowe’s, Réno-Dépôt and Dick’s Lumber.

Although primarily known as a hardware and building supplies merchant, the company is also believed to be one of the largest retailers of major appliances in the country as well as  a significant player in the outdoor furniture category. It also offers a wide range of indoor furniture – both upholstery and case goods – as well as furnishings and accessories on its e-commerce platforms.

“We are excited to announce that RONA is once again an independent company headquartered in Boucherville, Quebec,” Stefan Kaluzny, managing director of Sycamore Partners said in a statement. “We are honored that Lowe’s has entrusted Sycamore Partners to lead RONA into its next chapter and build upon RONA’s 84-year history serving communities across Canada. We look forward to working with RONA’s 26,000 associates and over 200 dealer partners to meet the home improvement needs of Canadian families, builders, and contractors.”

Lowe’s, the publicly held hardware giant based in Mooresville, North Carolina, entered the Canadian market in 2007, expanding its presence across the country when it purchased RONA in 2016 for the equivalent of C$3.2 billion.

Sycamore is paying US$400 million for the retail chain.

While no timeline was given, it is expected that the roughly 61 big box stores currently operating under the Lowe’s banner will be converted to the RONA network at some point.

“Today’s announcement represents the beginning of a new chapter in RONA’s long and rich history,” RONA president Tony Cioffi said. “With Sycamore’s support and expertise, we will continue to provide outstanding service and products for our customers’ home improvement and construction projects.”

Sycamore isn’t a complete stranger to the Canadian market, as it is a major stakeholder in the office supply specialist Staples/Bureau en Gros as well as Torrid and Talbots, two women’s wear retailers.

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