Lowe's to sell its Canadian operations, including Rona and Reno-Depot

A Rona store is seen on November 5, 2018 in St. Eustache, Que. THE CANADIAN PRESS/Ryan Remiorz

Home improvement chain Lowe's announced Thursday that it is selling all of its Canadian operations, including the Rona and Reno-Depot chains, to New York-based private equity firm Sycamore Partners for $400 million in cash and deferred consideration based on future performance.

Lowe's had bought Rona for $3.2 billion in 2016. The company said it expects to record a pre-tax non-cash impairment charge of about $2 billion related to its Canadian retail operations in the third quarter of 2022.

Marvin R. Ellison, chairman, president and CEO of Lowe's, said in a statement that the sale of its Canadian retail business is 'an important step towards simplifying Lowe's business model.'

Stefan Kaluzny, managing director of Sycamore Partners, says the company wants to make Lowe's Canada and RONA a stand-alone company with its headquarters in Boucherville.

The deal is expected to close in early 2023, subject to customary closing conditions and regulatory approvals, it says.

- This report by The Canadian Press was first published in French on Nov. 3, 2022