MOORESVILLE, N.C. & BOUCHERVILLE, Que. ― Lowe’s has announced this morning that it has entered into a deal with RONA inc. to acquire all of RONA’s common shares for CD$24 per share in cash, more than double the closing price of RONA’s shares as of last night, and all preferred shares for $20 per share. The deal is valued at $3.2 billion (US$2.3 billion).
Lowe’s Canada intends to move its head office from Toronto to RONA’s headquarters in Boucherville, Que., with Lowe’s Canada president Sylvain Prud’homme continuing in the lead role.
The deal has been unanimously accepted by RONA’s board of directors. The result will be Canada’s biggest home improvement retailer, with 2015 pro forma revenues from Canadian operations of approximately $5.6 billion, reports Lowe’s.
