Home-improvement giant Lowe’s is offloading its Canadian retail business, including the Rona hardware chain it acquired in 2016 for a roughly twelvefold increase in its store count there. The Mooresville-based company announced in a press release yesterday afternoon that Sycamore Partners has agreed to buy that division for $400 million in cash — plus “performance-based deferred consideration.”
Lowe’s did not disclose any details about that deferred consideration, which The Tax Advisor explains is a way of incorporating uncertainty about an asset’s value into its selling price.
The deal, expected to close in early 2023, includes about 450 corporate and independent affiliate dealer stores under multiple banners, including Rona, Lowe’s Canada, Réno-Dépôt and Dick’s Lumber. The business is based in Boucherville, Quebec.
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