Steve Payne
Lowe’s purchases RONA for $3.2-billion
Canadian ContractorAnother Canadian retailer - and an iconic one in our industry - gets American ownership
Once the largest Canadian-owned home improvement retailer, RONA inc., Boucherville, QC., is being sold to North Carolina-based Lowe’s, for $3.2-billion.
Lowe’s press release is now billing its new Canadian operation, which will be headquartered at RONA’s complex near Montreal, as “Canada’s leading home improvement retailer.”
From largest Canadian-owned, to leading in Canada, just like that. Lowe’s agreed to purchase the company, in a “friendly” takeover, for $24 cash per common share and $20 cash per preferred share.
Home Hardware, St. Jacobs, ON, now takes top spot among Canadian-owned hardware and building supply operators.
For a Canada News Wire press release issued by Lowe’s, please see here.
For the “we’ll be very vigilant” (about protecting our brothers’ and sisters’ jobs) press release issued by one of RONA’s main unions, Teamster’s Canada Local Union 1999, please see here.
For updates on the story, from our good friends at Hardlines.ca, the information service for home improvement retailers, please see here.
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Oh great…. another Target story in the making. Hopefully the Rona employees do not end up losing their jobs and the customers who rely on the stores in smaller communities don’t get left hanging (poor Zellers). Welcome to Canada the snot nose little cousin of the USA where everything is for sale at $0.69 on the dollar. Sorry, sorry again, and just in case sorry eh.
Identical to the purchase of General Paint by Americam owned Sherwin-Williams and several other Canadian businesses “We won’t change a thing” is the very first lie. Then the layoffs start…but only a few at a time, until there is virtually no trace of the old business left. It’s a pattern that is way too common to ignore.