Lowe's to sell Canadian business, including RONA stores, to private equity firm

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Lowe's Companies, Inc. is selling its Canadian retail business to New York-based private equity firm Sycamore Partners for US$400 million plus a performance-based deferred consideration.

Lowe's Canadian arm is based in Boucherville, Quebec, and operates or services around 450 corporate and independent affiliate dealer stores under a number of banners, including Lowe's, RONA, Reno-Depot and Dick's Lumber.

Lowe's chairman, president and CEO Marvin R. Ellison said the sale is an important step toward simplifying the Lowe's business model. The deal, expected to close in early 2023, will establish Lowe's Canada and RONA as a standalone, Quebec-headquartered company. Lowe's bought RONA Inc. in 2016 in a deal valued at $3.2 billion Canadian, or about US$2.4 billion, that at the time it said was a key step in accelerating its growth strategy.

The company's Canadian retail business makes up around seven per cent of the company's 2022 sales outlook.

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