SQUAMISH, BC, Aug. 18 /CNW Telbec/ - RONA Inc. ("RONA" or the "Company") (TSX: RON), the leading Canadian distributor and retailer of hardware, home improvement and gardening products, acquires 100% of the operating assets of British Columbia-based Mountain Building Centres Limited ("Mountain Building Centres").
Mountain Building Centres is an important supplier of building materials, home improvement and hardware products in the Sea to Sky Corridor of British Columbia. Mountain Building Centres is a private company founded in 1993 by Brian McIntosh and Ken Pickering. The company employs 60 full time staff members and posted sales of $22 million in 2005.
Mountain Building Centres operates three retail outlets in British Columbia, located in Squamish (39009 Discovery Way), Whistler (1350 Alpha Lake Road) and Pemberton (7456 Prospect Street). Currently operating under the Tim-BR Mart banner, the store network includes approximately 61,000 square feet of combined retail/warehouse space and 7 acres of outdoor lumberyard storage. Lumber and building materials represent approximately 70 % of the chain's sales.
The transaction will be financed by RONA's existing credit facilities.
Significant advantages
RONA believes that the acquisition of Mountain Building Centres will generate a number of significant strategic advantages and will allow the company to:
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- Increase sales to businesses, industries, and institutions in BC's Sea
to Sky Corridor.
- Expand its expertise in this field, with the addition of an experienced
team.
- Achieve recurring annual synergies proportional to those achieved with
earlier acquisitions.
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RONA President and CEO Robert Dutton said that "adding Mountain Building Centres will strengthen RONA's network north of Vancouver and allow us to better serve the commercial, industrial and institutional sector as well as the home renovator market in the thriving Sea to Sky country. Moreover, as a National Partner of the VANCOUVER 2010 Olympic and Paralympic Winter Games, it is only fitting that RONA grow its presence in the region that will be hosting a significant portion of the Games. Together with the Mountain Building Centres team, we will proudly lend a hand to help build Canada's games."
Brian McIntosh, General Manager of Mountain Building Centres, is also pleased with the transaction. "We're happy to complete the sale of the operating assets of our company to a thriving Canadian chain that understands how we go to market and one that will continue to serve all our customers in the Mountain Building Centres tradition. RONA will provide our staff with further development and growth opportunities."
"Our customers will have an enhanced selection of products and services at great prices. RONA's buying offices will bring exciting new merchandise and outstanding pricing to Mountain Building Centres stores," said Mr. McIntosh. According to Mr. McIntosh, the sale will enable Mountain Building Centres to continue to grow as a leading player in building materials and in hardware-renovation products in the Sea to Sky Corridor, with improved and expanded services in the years ahead. "It will be business as usual...only better," he concluded.
Four acquisitions since the beginning of 2006
The acquisition of Mountain Building Centres follows three other acquisitions announced by RONA since the beginning of the year. In July, RONA completed the acquisition of Curtis Lumber Limited, a chain operating six retail outlets in British Columbia and, in April, 51% of operating businesses of Matériaux Coupal with nine points of sale in the Greater Montreal Area. The company also acquired in March a chain of eight Chester Dawe stores in Newfoundland and Labrador. These four transactions have allowed RONA to add more than $306 million in retail sales to its network and welcome over 1,060 new employees.
Forward-looking Information
This press release contains forward-looking statements reflecting RONA's objectives, estimates and expectations. Such statements may be marked by the use of verbs such as "believe," "anticipate," "estimate" and "expect" as well as the use of the future or conditional tense. By their very nature, such statements involve risks and uncertainty. Consequently, results could differ materially from the company's projections or expectations. For information on the nature of risk factors not specifically discussed in this press release, the reader can consult RONA's 2005 Annual Report under the heading "Risks and Uncertainties," page 31. The Annual Report is available on RONA's website at www.rona.ca or on SEDAR at www.sedar.com .
About RONA
RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of more than 600 franchise, affiliate and corporate stores of various sizes and formats. With over 25,000 employees working under its family of banners in all regions of Canada and more than 14 million square feet of retail space, the RONA store network generates $5.6 billion in annual retail sales.
For further information: Stephane Prud'homme, Public Relations Manager, RONA Inc., (514) 599-5114 or 1 877 599-5900 Ext. 5114, (514) 258-2693 Cellular Phone, media@rona.ca
