Lowe’s to sell Canadian retail business to Sycamore Partners
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.
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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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