Moffatt & Powell Joins RONA

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MAJOR INDEPENDENT ONTARIO DEALER MOFFATT & POWELL JOINS RONA

Canadian industry leader actively developing affiliate dealer network

Boucherville, Quebec, July 30, 2010 - RONA inc. (TSX: RON), the largest Canadian distributor and retailer of hardware, renovation and gardening products, today announced that independent dealer-owner Moffatt & Powell Limited has joined RONA. Moffatt & Powell is the first member of the Independent Lumber Dealers Co-Operative (ILDC) to join the RONA network. The five new stores to be flying the RONA banner are located in London, Mitchell, Strathroy, Tillsonburg and Watford, Ontario. Ranging in size from 2,500 to 7,500 square feet for a total of 26,000 square feet of retail space, the Moffatt & Powell stores also feature large lumberyards. The locations generate over $30 million in annual retail sales.

Moffatt & Powell is currently co-owned by David Powell, who will soon hand over management duties to his 32-year-old daughter Nancy Powell Quinn and her husband, D'Arcy Quinn. A successful business with strong and longstanding community ties, Moffatt & Powell provides RONA with great potential for growth in Southwestern Ontario. The company was co-founded by Melvin Powell and J. Keith Moffatt in 1956, with a solid foundation inherited from a business Moffatt's father had been operating since 1939. In 1982, Moffatt & Powell Limited merged with D.M. Powell Limited and David Powell purchased Melvin Powell's share in the business. The company joined the Independent Lumber Dealers Co-Operative after the merger.

RONA president and CEO Robert Dutton explains that the development of the independent dealer-owner network has always been one of RONA’s key growth vectors. "I'm very pleased that Moffatt & Powell is joining RONA. The company has been rooted in the community for over 70 years. Not only do we share the same staying power, we're also both focused on the future. Their objectives show that we have a great deal in common, including a shared concern for well-thought-out succession planning," he said. "We see strong growth potential for Moffatt & Powell, and they know they can count on RONA to continue to consolidate their market."

"We are extremely proud to be joining RONA and look forward to becoming part of a strong banner with a national presence and a very promising strategic development plan. We know we can count on RONA's team to work with us and help us achieve our growth plans. I feel privileged to be working with them as I gradually turn over the reins to my daughter Nancy and son in-law D'Arcy Quinn. Concerned as I am with succession planning, I feel that with RONA I have exactly what they will require in terms of support to help them grow and expand our family business," said Moffatt & Powell co-owner David Powell.

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