-- Transaction valued at C$3.2 billion (US$2.3 billion) --
- Transaction unanimously approved by both companies' Boards of Directors
- Agreement is based on compelling strategic rationale for both companies
- Lowe's pledges important commitments to RONA's key Canadian stakeholders
- Lowe's to locate its Canadian head office in Boucherville, Quebec; Canadian operations to be headed by Sylvain Prud'homme, President of Lowe's Canada
- Acquisition accelerates Lowe's growth strategy in Canada
MOORESVILLE, N.C. and BOUCHERVILLE, Quebec, Feb. 3, 2016 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) ("Lowe's" or the "Company") and RONA inc. (TSX: RON, RON.PR.A) ("RONA") announced today that they have entered into a definitive agreement under which Lowe's is expected to acquire all of the issued and outstanding common shares of RONA for C$24 per share in cash, and all of the issued and outstanding preferred shares of RONA for C$20 per share in cash. The total transaction value is C$3.2 billion (US$2.3 billion) (the "Transaction"). The offer represents a premium of 104 percent to RONA's closing common share price on February 2, 2016 and a 38 percent premium to RONA's 52-week high of C$17.36. Together, Lowe's Canada and RONA stores will create Canada's leading home improvement retailer with 2015 pro forma revenues from Canadian operations of approximately C$5.6 billion. Excluding transaction and integration costs, we anticipate the Transaction will be accretive to Lowe's earnings in the first year following the close of the acquisition.
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