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RONA Increases its Presence in the ICI Market by Acquiring Plumbing and Heating Specialist Best-MAR
RONA Increases its Presence in the ICI Market by Acquiring Plumbing and Heating Specialist Best-MAR
By: Marketwire .
Jan. 9, 2008 03:00 PM
BOUCHERVILLE, QUEBEC -- (MARKET WIRE) -- 01/09/08 -- RONA (TSX: RON), the leading Canadian distributor and retailer of hardware, home renovation and gardening products, increases its presence in the specialized plumbing and heating market in Ontario by acquiring the operating assets of Best-MAR Plumbing and Heating Supplies Inc. ("Best-MAR"). This transaction further strengthens RONA's position in the fast growing ICI market ("Institutional, commercial and industrial") and follows the 2007 Noble Trade acquisition. The three Best-MAR locations will be integrated to Noble Trade's existing network of 19 branches. The transaction has been finalized pending certain conditions. The transaction is expected to close in the first quarter of 2008 and will be financed through RONA's existing credit facilities. Best-MAR (please see www.bestmar.com) was founded in July 1994. Today, it generates close to $20.0 million in sales and operates three convenient Ontario locations, including its flagship in Cornwall, its head office in Ottawa and its newest showroom in Brockville. For more than a decade, Best-MAR has delivered superior products and service to the greater Ottawa/Gatineau area. With a staff of 45 highly skilled and dedicated employees, the Best-MAR team brings exceptional quality service to contractors in the new home, industrial, commercial and renovation industries. Commenting on the transaction, RONA's Vice-President of Commercial and Professional market, Michael Storfer said: "Today's acquisition reflects our intention to develop our network of specialized plumbing and heating branches in Canada. We're very happy to announce this transaction as Best-MAR represents an excellent fit with our existing operations and provides us with a springboard in the greater Ottawa/Gatineau region. Best-MAR has strong growth potential in the region and offers interesting synergies with Noble Trade's network. We are very pleased to welcome Best-MAR's 45 employees to RONA." Best-MAR's owner and President Alvin Stein was also delighted with the announcement: "We believe RONA, through its Noble Trade's network, has all the qualities and resources necessary to continue to grow our business. By joining such a strong Canadian organization, we're highly confident our employees will continue to successfully develop the Company and contribute to RONA's success." The acquisition of Best-MAR meets all of RONA's rigorous acquisition criteria: - Best-MAR is expected to add to RONA's earnings per share as of the closing date. - It operates in a similar segment as Noble Trade, which should lead to recurring annual synergies. - It has an experienced management and employees sharing the same values. - The Company is profitable and has strong growth potential. 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. Factors that could cause results to differ materially from such statements include, among other things, the fact that the expected closing of the transaction referred to in this press release is subject to certain conditions. For information on the nature of risk factors not specifically discussed in this press release, please consult RONA's 2006 annual report under the heading "Risks and Uncertainties." ABOUT RONA RONA Inc. is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of over 670 corporate, franchise and affiliate stores of various sizes and formats. With over 26,000 employees working under its family of banners in every region of Canada and more than 14 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales.
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