Lowe’s Canada has struck a deal to acquire the leases of 13 former Target Canada locations in the wake of the discounter’s withdrawal from the country. Lowe’s also has agreed to purchase Target’s Milton, Ontario distribution center.
Total purchase price tag for the deal is C$151 million, according to Lowe’s, or about $125 million.
The acquired locations range across Canada, the company stated, many in markets where Lowe’s is underpenetrated. The Milton distribution center is in position to strategically serve Lowe’s current and future stores, the company added.
The proposed acquisitions await final court approval, the retailer said.
“Since opening stores in Canada in 2007, we have developed a successful model for providing the Canadian customer with outstanding service and quality products for the home,” said Sylvain Prud’homme, president of Lowe’s Canada. “These additional locations will accelerate our expansion across the country, enhancing our presence in Western Canada and strengthening our base in Ontario. We are excited to bring Lowe’s to more customers in more communities in Canada, further demonstrating our commitment to this important market.”
Lowe’s operates 38 stores in Canada.