RONA, Canada's largest hardware retailer and distributor, is selling its Commercial and Professional Market division to Talisker Plumbing Corp., a subsidiary of Emco Corp., for an expected net cash consideration of $215 million after fees and transaction expenses.
According to Bloomberg, the sale will primarily help RONA pay down debt and free up capital to focus in on its retail operations.
The division, which specializes in plumbing, heating, ventilation and HVAC systems, was created when RONA acquired Noble in 2007. It now employs more than 1,400 in Ontario, Quebec and British Columbia, and it is expected to maintain its store locations and current management structure.
As of the June 20 statement, the transaction is still subject to regulatory approvals. The division will be classified as a discontinued operation, and RONA will be required to value the assets held for sale. The transaction is expected to result in a pre-tax loss of approximately $125 million.