Canadian hardware retailer Rona has agreed to acquire all franchise stores in its network for an undisclosed amount.
The move is in line with the company’s ongoing recovery and banner repositioning plan launched just over a year ago.
The deal covers the acquisition of 17 big-box stores and three proximity stores that are operating under Rona, Rona L’entrepot and Rona Home & Garden banners in Quebec and Ontario.
These franchise stores employ 2,600 people in total and generate over $500m in retail sales.
Upon completion of the acquisition, the network of 79 big-box stores across Canada will be wholly owned by Rona.
Rona president and CEO Robert Sawyer said: "By consolidating these stores, we will be able to simplify our business model and focus on the sales of our independent dealers, who operate over 275 affiliated stores across Canada, and on our network of corporate stores.
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"We are excited about pursuing the development of the stores affected by this transaction, which occupy an enviable position in their respective regions."
The acquisition is subject to due diligence review of the business of each of the stores, Rona’s satisfaction, and approval of Rona’s board of directors and the customary regulatory approvals.