Rona Inc. has signed a letter of intent to acquire the 20 franchise stores in its retail network, which includes 17 big box stores and three proximity stores, operating under the banners Rona, Rona L’entrepôt and Rona Home & Garden.
The stores, 18 in Quebec and two in Ontario, have a combined workforce of 2,600 employees and generate over $500 million in retail sales, the Canadian home center retailer noted.
“This transaction is in line with our ongoing recovery and banner repositioning plan launched just over a year ago. By consolidating these stores, we will be able to simplify our business model and focus on the sales of our independent dealers, who operate over 275 affiliated stores across Canada, and on our network of corporate stores. We are excited about pursuing the development of the stores affected by this transaction, which occupy an enviable position in their respective regions,” said Robert Sawyer, president and CEO of Rona.
The company’s network of 79 big box stores across Canada will now be wholly owned by Rona. The closing of the transaction is conditional on a due diligence review of the business of each of the stores and customary regulatory approvals.
Rona operates over 500 corporate, franchise and independent affiliate stores and nine distribution centers. Rona also serves independent dealers operating under different banners, including Ace for which the company owns the licensing rights and is the exclusive distributor in Canada.