Lowe's Companies, Inc. has announced its plan to sell its Canadian retail business to a private American equity firm.
On November 3, the company announced that it would be selling the Canadian retail business, including Lowe's, RONA, Reno-Depot, and Dick's Lumber to New York-based private equity firm Sycamore Partners for $400 million USD plus a "performance-based consideration."
Based in Boucherville, Quebec, the Canadian branch of Lowe's operates or services approximately 450 corporate or independent affiliate dealer stores under their retail banners.
Sycamore Partners currently owns a range of retailers, including Express, Loft and Ann Taylor, Hot Topic, Staples Canada, Stuart Weitzman and Nine West Holdings.
In a news release, Lowe's chief executive and chairman Marvin Ellison said, "The sale of our Canadian retail business is an important step toward simplifying the Lowe's business model."
Lowe's previously purchased RONA Inc. in 2016 in a deal valued at $3.2 billion Canadian. This new deal is expected to close in early 2023 and will establish Lowe's Canada and RONA as a stand-alone, Quebec-headquartered company.