RONA Acquires Dick's Lumber

RONA, the leading Canadian distributor and retailer of hardware, home renovation and gardening products, continues to increase its presence in British Columbia by acquiring 100 percent of the operating assets and real estate of lumber, building materials and hardware specialist Dick's Lumber. This transaction follows the 2006 Curtis Lumber and Mountain Building Supplies acquisitions and the addition of 14 stores in British Columbia in the past two years through store openings and the recruitment of independent dealers. With the addition of Dick's Lumber three specialized stores in the Vancouver Area, RONA will have 54 stores in British Columbia and will continue opening new big-box and proximity stores. The transaction has been finalized pending the usual conditions and regulatory approvals and will be financed through RONA's existing credit facilities. The transaction is expected to close in the fourth quarter of 2007.

"Awareness of the RONA brand has rapidly increased in Western Canada in the past few years. According to a recent survey, unaided awareness went from 54 percent in 2003 to 78 percent in 2007," says president and chief executive officer Robert Dutton. "We have every intention of becoming the clear market leader by offering a unique shopping experience to our retail and commercial customers there. We're very confident our investments in BC will bear fruit. The province can count on diversified sources of growth to keep its economy running at a good pace."

Dick's Lumber corporate general manager David Alexander was also delighted with the deal. "We're extremely pleased to join forces with RONA as we share the same values," he says. "It's important for the family and the employees to keep our founders' dream alive. We believe RONA has all the qualities it takes to continue to grow our business based on our success in the past 40 years, achieved by providing exceptional service to all our customers. By joining such a strong Canadian brand, we're highly confident our employees will continue to successfully develop the company and contribute to RONA's success by sharing best practices."

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