Boucherville, Quebec-based Rona, the largest hardware retailer and distributor in Canada, announced it has signed a deal to purchase dealer-owned, wholesale distributor TruServ Canada.
"This proposed acquisition represents an important step in our strategy to accelerate the consolidation of the Canadian Renovation - Construction industry and is exactly in line with our objective to continually strengthen our leadership position in the distribution business, which is the roots of our company," said Robert Dutton, president and CEO of RONA.
Winnipeg, Manitoba-based TruServ Canada has two warehousing and distribution centers -- one 400,000-sq.-ft. facility in Winnipeg, Manitoba and one 250,000-sq.-ft. facility in Kitchener, Ontario, where it supplies more than 40,000 SKUs with another 80,000 direct shipment options. The company serves approximately 650 independent dealers across Canada, including 250 stores under the True Value, V&S, Country Depot and other specialized banners, as well as 400 non-bannered stores.
"By serving 650 new dealers, the acquisition of TruServ Canada would provide instant geographical penetration in many Canadian communities, particularly in Ontario and Western Canada, thus creating important growth opportunities. The proposed acquisition would also diversify the network of dealer stores served by Rona by adding hardware, general merchandising and agriculture specialized stores and would therefore increase our ability to serve small and mid-size specialized dealers across Canada," Dutton said.
"This is an excellent opportunity for TruServ Canada and its shareholders. Joining forces with RONA would further strengthen our ability to offer independent retailers access to products and services needed to compete in today's market. Our customers would still be able to count on our employees' know-how to get the same top-quality service they're used to," said TruServ chairmen Pierre Levesque.
The transaction is expected to close by the end of the year. Financial terms were not disclosed.