Lowe’s Companies, Inc. is promoting its Canadian retail enterprise to New York-based private equity firm Sycamore Partners for $400 million US plus a performance-based deferred consideration.
Lowe’s Canadian arm is predicated in Boucherville, Que., and operates or companies round 450 company and unbiased affiliate seller shops below plenty of banners, including Lowe’s, Rona, Reno-Depot and Dick’s Lumber.
Lowe’s chair, president and CEO Marvin R. Ellison stated the sale is a vital step towards simplifying the Lowe’s enterprise model.
The deal, anticipated to shut in early 2023, will set up Lowe’s Canada and Rona as a standalone, Quebec-headquartered firm.
Lowe’s purchased Rona Inc. in 2016 in a deal valued at $3.2 billion Cdn, or about $2.4 billion US, that on the time it stated was a key step in accelerating its development technique.
The firm’s Canadian retail enterprise makes up round seven per cent of the corporate’s 2022 gross sales outlook.