Lowe's Canada is being sold to an investment fund. The parent company, US home improvement giant Lowe's, is selling its Canadian retail business for USD 400 mio (EUR 410 mio) to Sycamore Partners, a private equity firm specialising in retail, consumer and distribution investments. Lowe's Canadian retail business operates or services approximately 450 corporate and independent dealer shops in a number of complementary formats under various brand names, including Rona, Lowe's Canada, Réno-Dépôt and Dick's Lumber. The intention is to "establish Lowe's Canada and Rona as a standalone company headquartered in Boucherville, Quebec," said Stefan Kaluzny, managing director of Sycamore Partners.
Marvin R. Ellison, chairman, president and CEO of Lowe's, called the sale "an important step in simplifying the Lowe's business model," adding: "With the execution of this transaction, we will increase our focus on improving our operating margin and return on capital, taking market share in the US and creating greater shareholder value." He said he remains confident about the US business.
The press release also quotes Tony Cioffi, president of Lowe's Canada, as saying “we are excited to be working with Sycamore Partners on this next growth chapter for our business”.
The transaction is expected to close in early 2023, subject to customary closing conditions and regulatory approvals.