Lowe’s acquires Rona

Lowe's, the second-biggest DIY store operator in the USA and worldwide, has acquired the Canadian DIY store group Rona. The American DIY company thus increases its sales volume in Canada, where it already has 40 stores, to around CAD 5.6 bn. Rona's multiple retail banners, primarily Rona L'entrepôt and Réno-Dépôt, are to be retained along with the distribution service to independent dealers; Rona currently has a network of nearly 500 corporate and independent affiliate dealer stores. The Rona headquarters  in Boucherville (Québec) is also to become the new Lowe's headquarters, with most employees and key executives in the leadership team being retained. Sylvain Prud'homme, president of Lowe's Canada, will continue to head the Canadian operation.
The purchase price of CAD 3.2 bn (USD 3.2 bn) means that Rona shareholders will receive a premium of 104 per cent to Rona's closing common share price on February 2, 2016 and a 38 per cent premium to Rona's 52-week high of CAD 17.36.