Lowe’s Companies, the world’s second-largest home improvement retail chain, have agreed to acquire RONA, Canada’s largest home improvement retailer. All of the issued and outstanding common shares of RONA will be bought for C$24 per share in cash and all of the issued and outstanding preferred shares of RONA for C$20 per share in cash. A total of C$2.3 billion.
The plan built together with this purchase is that the two companies’ stores develop the leading home improvement retailer from Canada. The deal represents a premium of 104% over RONA’s share price in February 2, 2016 and a 38% premium on RONA's 52-week high.
"The transaction is expected to accelerate Lowe's growth strategy by significantly expanding our presence in the Canadian market through the addition of RONA's attractive business and excellent store locations across the country," said Lowe's Chairman, President and CEO Robert A. Niblock.
Lowe’s also plans to invest over $720 million to increase profitability in expanding customer reach and serving a new portion of the market.
[gravityform id="1" title="true" description="true"]
[gravityform id="2" title="true" description="true"]
