RONA Completes the Acquisition of all the Franchised Stores of its Network
(firmenpresse) - BOUCHERVILLE, QUEBEC -- (Marketwired) -- 10/07/15 -- RONA inc. (TSX: RON)(TSX: RON.PR.A) has completed the acquisition of the 20 franchised stores in its network, following the announcement on July 16, 2015 that RONA had signed a letter of intent to this effect. The last of these transactions was completed this morning, following satisfactory due diligence and the entering into of definitive purchase agreements.
RONA has acquired, through 15 individual transactions, substantially all of the assets of these 20 franchised stores, comprising 17 big box stores and three proximity stores, operating under the RONA, RONA L''entrepot and RONA Home & Garden banners. Two of those transactions were closed on the last day of the third quarter and the remainder were closed in the fourth quarter.
These stores, 18 of which are located in Quebec and two in Ontario, generate more than $500 million in retail sales annually. The overall consideration, prior to working capital adjustments, for the acquisition is $193 million. Under IFRS requirements, RONA will record a one-time pre-tax expense in the amount of $48.5 million forming part of the overall consideration for the acquisition to account for the settlement of a pre-existing relationship between the Corporation and the sellers. Simultaneously, RONA will receive $19 million for its economic interest in three legal entities that held the assets purchased.
"We are pleased to announce that this transaction has been finalized and we are proud to be able to count on the skills and experience of the 2,600 employees as they continue to provide our customers with excellent service," said Robert Sawyer, President and Chief Executive Officer of RONA.
Each of the acquired stores holds an enviable position in its market and this transaction solidifies RONA''s foundation to continue to grow its business.
About RONA
RONA inc. is a major distributor and retailer of hardware, building materials and home renovation products in Canada. The Corporation operates a network of over 500 corporate and independent dealer affiliate stores under several different banners, and in a number of complementary formats. With its nine distribution centres, RONA serves its store network as well as many independent dealers operating under other banners, including the Ace banner which RONA is licenced to use and for which it is the exclusive distributor in Canada. With some 24,000 employees, the Corporation generates annual consolidated sales of $4.1 billion. For more information, visit .
Contacts:
Media
Valerie Gonzalo
Media Relations
514-599-5900, ext. 5271
Financial Community
Andre Lavoie
Vice-President, Finance and Investor Relations
514-599-5900, ext. 8356
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Datum: 07.10.2015 - 07:34 Uhr
Sprache: Deutsch
News-ID 1390702
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