May 9, 2002
RONA buys Cashway
RONA Inc. recently entered into an agreement to acquire Cashway Building Centres Ltd., Ontario's third largest hardware chain with 61 stores.
Along with purchasing all Cashway shares, RONA will also purchase all Cashway stores belonging to subsidiaries of shareholder Russel Metals Inc.
The company plans to invest more than $400 million over the next two years to realize its plan to become a major player in Ontario's $8 billion hardware, building materials and home improvement market.
Subject to all relevant regulatory regulations and closing conditions, this transaction will cost in the range of $50 million.
"The acquisition of Cashway is a key step in RONA's development strategy for Ontario," says Robert Dutton, president and CEO of RONA. "It will immediately provide an increased presence and significant visibility in the marketplace throughout the province." RONA already has 50 RONA Hardware, Botanix and RONA Home Centre stores, as well as a big box RONA Warehouse store in Nepean, Ontario. All existing stores will now be called RONA Cashway. With this announcement, Dutton also unveiled plans to open warehouse-style stores in Ontario, the first to be located in Brampton.
For information on this acquisition and future plans, please contact RONA Inc., (514) 599-5100.