By Competition Bureau of Canada/Rona
Rona reaches agreement with competition bureau, announces acquisition of All-Fab Group
Canadian Contractor
Rona and its private equity partner have announced the acquisition of All-Fab Group, one of the largest building solutions providers across Western Canada. AFG has served the needs of building contractors, building owners, and dealers across western Canada for over 50 years. The transaction aims to provide AFG with additional resources to accelerate growth and invest in products and capabilities to better serve developers, builders, and families across western Canada and the United States. Closing terms for the transaction were not disclosed.
The federal Competition Bureau has entered into a consent agreement with Rona to address competition concerns related to its proposed acquisition of All-Fab Building Components. A bureau review concluded that the proposed transaction would likely result in a substantial lessening of competition in the design, supply and manufacturing of roof and floor trusses used in housing construction in the Saskatoon, Sask., area. Specifically, the bureau found that the loss of rivalry between Rona and All-Fab would likely result in higher prices and fewer options for customers in the area. To resolve the bureau’s concerns, Rona has agreed to sell a truss manufacturing facility that it owns in Martensville, Sask. The sale will be made to an independent purchaser to be approved by the Commissioner of Competition. The bureau says it is satisfied that the sale will resolve the competition concerns that could result from the proposed transaction. A consent agreement contains remedial measures meant to address the likely anti-competitive effects of a merger. It has the force and effect of a court order once it is registered with the Competition Tribunal.
The complete consent agreement is available on the website of the Competition Tribunal.
AFG is one of the largest building solutions providers in Canada. The company operates 18 business units from the mid-west USA to the west coast. AFG provides the light construction industry with engineered structural building components, building material supply packages and building construction projects for custom buildings. The company services all residential housing markets as well as the light industrial and agricultural building sectors.
Rona is one of Canada’s leading home improvement retailers headquartered in Boucherville, Que. The Rona network operates or services some 425 corporate and affiliated dealer stores under the Rona Plus, Rona and Dick’s Lumber banners. Rona has supported Canadians in their home improvement and construction projects since 1939.