US-based home improvement retailer Lowe’s has sold its Canadian retail business to private equity firm Sycamore Partners.

Lowe’s Canada will now operate under the name RONA, while the company’s stores in Canada will be gradually converted to the RONA banner for both DIY customers and contractors.

At the same time, Lowe’s will continue to provide home improvement products for communities across the US, with all RONA banners offering products from Lowe’s private brands.

The financial terms of the deal have not been disclosed.

Lowe’s chairman, president and CEO Marvin Ellison said: “With the closing of this transaction, we are now singularly focused on the transformation of our US home improvement business, where we have a great opportunity to simplify Lowe’s operations and take market share.

“Our simplified business model will support our efforts to improve operating margin and ROIC, while delivering sustainable value to our shareholders.

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“I would like to extend my appreciation to the entire Canadian team for their commitment to serving our customers, and I wish them the best as they move forward under new ownership.”

Based in Boucherville, Québec, RONA operates around 450 corporate and independent affiliate dealer stores in Canada under various banners.

These include RONA, Lowe’s, Réno-Dépôt and Dick’s Lumber.

Sycamore Partners managing director Stefan Kaluzny said: “We are excited to announce that RONA is once again an independent company headquartered in Boucherville, Quebec.

“We are honoured that Lowe’s has entrusted Sycamore Partners to lead RONA into its next chapter and build upon RONA’s 84-year history serving communities across Canada.”

Goldman Sachs & Co acted as Lowe’s’ financial adviser for the deal, while Cleary Gottlieb Steen & Hamilton and Stikeman Elliott served as its legal counsel.

Based in Mooresville, North Carolina, Lowe’s operates more than 1,700 home improvement stores and has around 300,000 employees.

The company generated more than $96bn in sales in fiscal 2021 (FY21).