US firm Lowe’s on Thursday announced the sale of its Canadian banners RONA, Réno-Dépôt and Dick’s Lumber to Sycamore Partners, a private equity firm, for $400 million.
“The sale of our Canadian retail business is an important step toward simplifying Lowe’s business model,” Marvin Ellison, Chairman, President and CEO of Lowe’s, said in a statement.
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“While this business represents approximately 7% of our full 2022 revenue forecast, it is also approximately 60 basis points to soften our full 2022 operating margin forecast.”
Sycamore Partners’ managing director, Stefan Kaluzny, said he was “happy” to partner with Lowe’s Canada and RONA.
“We look forward to working with the leadership team of an organization with an 83-year history as Canada’s leading home improvement company serving families, builders and entrepreneurs in communities across the country.”
Remember, Lowe bought RONA in 2016 for about $3.2 billion.
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