Feb 03, 2016
By Andy Johnson
U.S. home improvement retailer Lowes is buying Quebec-based Rona for $3.2 billion in cash.
Lowes is offering $24.00 a share for Rona stock, which is more than double Rona’s closing price from yesterday. Lowes, will maintain the Rona brand.
Lowes, which is headquartered in North Carolina, operates a chain of retail home improvement and appliance stores in the U.S., Canada and Mexico.
Rona employes 22,000 people and is a distributor and retailer of hardware, home improvement and gardening products. It was founded in 1939. Its stock closed last night at $11.75 a share.
Lowes says the merger will create the largest home improvement operation in Canada.