Mooresville, S.C. – Sycamore Partners has signed a definitive settlement to amass the 450-store operation that includes Lowe’s Canadian retail division.
The deal consists of Lowe’s Canada, which like its U.S. counterpart sells house furnishings and furnishings on-line; Rona, a house renovation and building retailer that sells house furnishings and furnishings on-line; Réno-Dépôt, a house provide chain that sells ornamental house furnishings on-line; and Dick’s Lumber, a constructing provides chain.
The deal was made for $400 million in money together with a performance-based deferred consideration. The transaction is anticipated to shut in early 2023, topic to closing situations and regulatory approvals.
In reference to the preparation of the corporate’s monetary statements for the third quarter of 2022, Lowe’s expects to file a pre-tax non-cash impairment cost of roughly $2.0 billion associated to its Canadian retail enterprise.
“The sale of our Canadian retail enterprise is a crucial step towards simplifying the Lowe’s enterprise mannequin,” mentioned Marvin R. Ellison, Lowe’s chairman, president and CEO. “Whereas this enterprise represents roughly 7% of our full yr 2022 gross sales outlook, it additionally represents roughly 60 foundation factors of dilution on our full yr 2022 working margin outlook,”
Sycamore Companions was among the many corporations that ready bids final spring to amass Kohl’s, which in the end didn’t get bought and stays a publicly traded firm. The non-public fairness agency acquired the Belk regional division retailer chain 2015. Amongst its different retail holdings, it owns Staples, Ann Taylor/Loft, Specific and Lane Bryant.
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