Skip to main content

Lowe’s selling its Canadian business to Sycamore Partners

lowes exterior
Lowe’s is selling its Canadian retail division to Sycamore Partners.

Lowe's Companies is selling its Canadian division to a U.S. private equity company.

The home improvement retailer has entered into a definitive agreement to sell its Canadian retail business to Sycamore Partners for $400 million in cash, plus a performance-based deferred consideration. The transaction is expected to close in early 2023.

Based in Boucherville, Quebec, Lowe's Canadian division includes  approximately 450 corporate and independent affiliate dealer stores under different banners, which include Rona, Lowe's Canada, Réno-Dépôt and Dick's Lumber. The deal will establish Lowe's Canada and Rona as a standalone, Quebec-headquartered company.

"The sale of our Canadian retail business is an important step toward simplifying the Lowe's business mode,” said Marvin R. Ellison, Lowe's chairman, president and CEO.

Ellison noted that while Lowe’s Canadian division represents approximately 7% of its full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on the company’s  full year 2022 operating margin outlook.

“By executing this transaction, we will intensify our focus on enhancing our operating margin and ROIC, taking market share in the U.S. and creating greater shareholder value," Ellison said. "We remain confident in our short and long-term outlook for the U.S. business, underscored by improved  sales trends and strong profit flow-through in the third quarter, as well as our expectations for solid business performance for the remainder of 2022.

Lowe's acquired Rona Inc. in 2016 in a deal valued at  about $2.4 billion.

"We are honored to partner with Lowe's to establish Lowe's Canada and Rona as a standalone company headquartered in Boucherville, Quebec," said Stefan Kaluzny, managing director of Sycamore Partners. "We look forward to working with the company's management team to build on its 83-year history as a leading Canadian home improvement business serving families, builders, and contractors in their communities across the country."

"We are excited to work with Sycamore Partners on this next chapter of growth for our business,” added Tony Cioffi, president of Lowe's Canada. "Together, we will remain committed to supporting our associates, our Canadian- and Quebec-based vendors and our dealer network."

Lowe’s said it expects to record a pre-tax non-cash impairment charge of approximately $2.0 billion related to its Canadian retail business.


Goldman Sachs & Co. LLC is serving as financial adviser to Lowe's, and Cleary Gottlieb Steen & Hamilton LLP and Stikeman Elliott LLP are serving as legal counsel. 

RBC Capital Markets is serving as financial adviser to Sycamore Partners, and Kirkland & Ellis LLP and Blake, Cassels & Graydon LLP are serving as legal counsel.

With fiscal year 2021 sales of over $96 billion, Lowe's and its related businesses operate or service nearly 2,200 home improvement and hardware stores.

This ad will auto-close in 10 seconds