Lowe’s Pronounces Sale of Canadian Retail Enterprise to Sycamore Companions

MOORESVILLE, N.C., Nov. 3, 2022 /CNW/ – Lowe’s Corporations, Inc. (NYSE: LOW) right now introduced that it has entered right into a definitive settlement to promote its Canadian retail enterprise to Sycamore Companions, a non-public fairness agency specializing in retail, shopper and distribution-related investments, for $400 million in money, and performance-based deferred consideration.

Based mostly in Boucherville, Quebec, Lowe’s Canadian retail enterprise operates or providers roughly 450 company and impartial affiliate supplier shops in various complementary codecs below completely different banners, which embody, Lowe’s, RONA, Réno-Dépôt and Dick’s Lumber.

“The sale of our Canadian retail enterprise is a crucial step towards simplifying the Lowe’s enterprise mannequin.  Whereas this enterprise represents roughly 7% of our full yr 2022 gross sales outlook, it additionally represents roughly 60 foundation factors of dilution on our full yr 2022 working margin outlook,” mentioned Marvin R. Ellison, Lowe’s chairman, president and CEO. 

“We stay assured in our quick and long-term outlook for the U.S. enterprise, underscored by improved  gross sales tendencies and robust revenue flow-through within the third quarter, in addition to our expectations for stable enterprise efficiency for the rest of 2022.  By executing this transaction, we’ll intensify our concentrate on enhancing our working margin and ROIC, taking market share within the U.S. and creating better shareholder worth,” Ellison continued.  “I need to thank our total Canadian group for his or her exhausting work and dedication to our clients.  We look ahead to working with Sycamore Companions in executing a seamless transition.” 

“We’re honored to companion with Lowe’s to ascertain Lowe’s Canada and RONA as a standalone firm headquartered in Boucherville, Quebec,” mentioned Stefan Kaluzny, Managing Director of Sycamore Companions. “We look ahead to working with the corporate’s administration group to construct on its 83-year historical past as a number one Canadian residence enchancment enterprise serving households, builders, and contractors of their communities throughout the nation.”

“We’re excited to work with Sycamore Companions on this subsequent chapter of development for our enterprise.” mentioned Tony Cioffi, president of Lowe’s Canada. “Collectively, we’ll stay dedicated to supporting our associates, our Canadian- and Quebec-based distributors and our supplier community.”

The transaction is predicted to shut in early 2023, topic to customary closing situations and regulatory approvals.  In reference to the preparation of the corporate’s monetary statements for the third quarter of 2022, the corporate expects to file a pre-tax non-cash impairment cost of roughly $2.0 billion associated to its Canadian retail enterprise.

Lowe’s Enterprise Outlook
The corporate is reaffirming its present full yr 2022 outlook, unique of the asset impairment and impacts of deal-related transaction prices.

The Canadian retail enterprise represents roughly 7% of consolidated full yr 2022 gross sales outlook, and roughly 60 foundation factors of dilution on the consolidated full yr 2022 working margin outlook.

Goldman Sachs & Co. LLC is serving as monetary adviser to Lowe’s, and Cleary Gottlieb Steen & Hamilton LLP and Stikeman Elliott LLP are serving as authorized counsel.  RBC Capital Markets is serving as monetary adviser to Sycamore Companions, and Kirkland & Ellis LLP and Blake, Cassels & Graydon LLP are serving as authorized counsel.

About Lowe’s
Lowe’s Corporations, Inc. (NYSE: LOW) is a FORTUNE® 50 residence enchancment firm serving roughly 19 million buyer transactions per week in america and Canada. With fiscal yr 2021 gross sales of over $96 billion, Lowe’s and its associated companies function or service practically 2,200 residence enchancment and {hardware} shops and make use of over 300,000 associates. Based mostly in Mooresville, N.C., Lowe’s helps the communities it serves by way of applications targeted on creating secure, inexpensive housing and serving to to develop the following era of expert commerce consultants. For extra info, go to Lowes.com.

About Sycamore Companions
Sycamore Companions is a non-public fairness agency based mostly in New York. The agency focuses on retail, shopper, and distribution-related investments and companions with administration groups to enhance the working profitability and strategic worth of their enterprise. With roughly $10 billion in mixture dedicated capital raised since its inception in 2011, Sycamore Companions’ buyers embody main endowments, monetary establishments, household places of work, pension plans and sovereign wealth funds. For extra info on Sycamore Companions, go to www.sycamorepartners.com.

Disclosure Relating to Ahead-Trying Statements
This press launch consists of “forward-looking statements” inside the that means of the Non-public Securities Litigation Reform Act of 1995.  Statements together with phrases resembling “imagine”, “count on”, “anticipate”, “plan”, “want”, “mission”, “estimate”, “intend”, “will”, “ought to”, “may”, “would”, “could”, “technique”, “potential”, “alternative”, “outlook”, “situation”, “steering”, and related expressions are forward-looking statements.  Ahead-looking statements contain, amongst different issues, expectations, projections, and assumptions about future monetary and working outcomes, aims, enterprise outlook, priorities, gross sales development, shareholder worth, capital expenditures, money flows, the housing market, the house enchancment trade, demand for services, share repurchases, Lowe’s strategic initiatives, together with these regarding acquisitions and tendencies and the affect of such transactions on our strategic and operational plans and monetary outcomes.  Such statements contain dangers and uncertainties, and we can provide no assurance that they are going to show to be appropriate. Precise outcomes could differ materially from these expressed or implied in such statements.

All kinds of potential dangers, uncertainties, and different components may materially have an effect on our skill to realize the outcomes both expressed or implied by these forward-looking statements together with, however not restricted to, modifications generally financial situations, resembling volatility and/or lack of liquidity occasionally in U.S. and world monetary markets and the ensuing lowered availability and/or larger value of borrowing to Lowe’s and its clients, the chance that impairment of the divested companies and the costs related to the divesture may finally be better than what we at the moment count on, slower charges of development in actual disposable private earnings that would have an effect on the speed of development in shopper spending, inflation and its impacts on discretionary spending and on our prices, shortages, and different disruptions within the labor provide, rate of interest and forex fluctuations, residence worth appreciation or lowering housing turnover, the provision of shopper credit score and of mortgage financing, commerce coverage modifications or extra tariffs, outbreaks of pandemics, fluctuations in gas and power prices, inflation or deflation of commodity costs, pure disasters, armed conflicts, acts of each home and worldwide terrorism, and different components that may negatively have an effect on our clients.

The foregoing components and different uncertainties, dangers and potential occasions are described in “Merchandise 1A – Threat Components” in our most up-to-date Annual Report on Kind 10-Ok and could also be up to date occasionally in Merchandise 1A in our quarterly studies on Kind 10-Q or different subsequent filings with the SEC. All such forward-looking statements communicate solely as of the date they’re made, and we don’t undertake any obligation to replace these statements aside from as required by regulation.

SOURCE Lowe’s Canada

Lowe’s Pronounces Sale of Canadian Retail Enterprise to Sycamore Companions

For additional info: Lowe’s, Shareholder/Analyst Inquiries, Kate Pearlman, 704-775-3856, [email protected]; U.S. Media Inquiries, Steve Salazar, 704-881-4272, [email protected]; Canadian Media Inquiries, Media Relations, Lowe’s Canada, 514-599-5900, ext. 5271, 866-566-3342, [email protected]; Sycamore Companions, Jean-Pascal Lavoie, NATIONAL Public Relations, 418-208-4937, [email protected]

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