Joint venture with Woolworths

Lowe’s backs out of Masters in Australia

19.01.2016

Lowe's is giving up its stake in the Australian DIY retail chain Masters. Masters is a joint venture with the Australian trading group Woolworths. The US DIY retail operator has now announced it has provided notification to Woolworths of its intent to begin the process of exiting its investment in the joint venture, which operates Masters Home Improvement stores and Home Timber and Hardware Group's retail stores and wholesale distribution in Australia. Woolworth's owns two-thirds of the joint venture, and Lowe's owns one-third.
In the words of Richard D. Maltsbarger, Lowe's chief development officer and president of international, the second biggest retail operator in the world has decided "to focus our resources on areas of our business where we see greater potential return on our investment". Lowe's net investment in the joint venture to date is approximately USD 930 mio.
The joint venture agreement was signed in 2009, and the first Masters stores were opened in the second half of 2011 and now exceed 60 stores. Revenues for the joint venture, including both the Masters stores and the Home Timber and Hardware Group, were AUD 1.9 bn (USD 1.6 bn) in its latest fiscal year ended June 28, 2015.
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