MOORESVILLE, N.C. –
Lowe’s Companies, Inc. is promoting 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 relies in Boucherville, Quebec, and operates or providers round 450 company and impartial affiliate seller shops underneath quite a lot of banners, together with Lowe’s, RONA, Reno-Depot and Dick’s Lumber.
Lowe’s chairman, president and CEO Marvin R. Ellison mentioned the sale is a crucial step towards simplifying the Lowe’s business 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 Canadian, or about US$2.4 billion, that on the time it mentioned was a key step in accelerating its development technique.
The firm’s Canadian retail business makes up round seven per cent of the corporate’s 2022 gross sales outlook.