RONA to Acquire TruServ Canada

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RONA, the largest Canadian distributor and retailer of hardware, renovation and gardening products, and TruServ Canada Inc., a dealer-owned distributor headquartered in Winnipeg, announced today that they have signed an agreement whereby RONA would acquire all of the issued and outstanding shares of TruServ Canada. TruServ Canada operates two warehousing and distribution centres, one of 400,000 square feet in Winnipeg, Manitoba, and one of 250,000 square feet in Kitchener, Ontario, where it supplies over 40,000 products (SKUs), with another 80,000 available on direct programs. It generates distribution sales of over $100 million and serves more than 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.

"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 root of our Company," said Robert Dutton, President and Chief Executive Officer of RONA. "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-sized specialized dealers across Canada."

To view the full press release, click here.