Sycamore Partners, a private equity firm focused on retail, consumer and distribution-related investments, has bought Lowe’s Canadian retail business.

Based in Boucherville, Quebec, Lowe’s Canadian retail business operates or services approximately 450 corporate and independent dealer stores under different banners, which include Rona, Lowe’s Canada, Réno-Dépôt and Dick’s Lumber. The company was purchased for $400 million in cash and performance-based deferred consideration.

“We remain confident in our short and long-term outlook for the U.S. business, underscored by improved sales trends and strong profit flow-through in the third quarter, as well as our expectations for solid business performance for the remainder of 2022,” comments Marvin Ellison, Lowe’s chairman, president and CEO. “By executing this transaction, we will intensify our focus on enhancing our operating margin and ROIC, taking market share in the U.S. and creating greater shareholder value,”

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