Page 12 - Nov-Dec 2022 Reporter

Industry NEWS

distribution-related investments, for $400 quarter of 2022, the company expects to About Sycamore Partners
million in cash, and performance-based record a pre-tax non-cash impairment charge Sycamore Partners is a private equity firm
deferred consideration. of approximately $2.0 billion related to its based in New York. The firm specializes in
Based in Boucherville, Quebec, Lowe’s Canadian retail business. retail, consumer, and distribution-related
Canadian retail business operates or Our head office will remain in Boucherville, investments and partners with management
services approximately 450 corporate and Quebec. teams to improve the operating profitability
independent affiliate dealer stores in a We will eventually move away from the and strategic value of their business. With
number of complementary formats under Lowe’s banner in Canada in favour of the RONA approximately $10 billion in aggregate
different banners, which include Lowe’s, banner in a manner that ensures the least committed capital raised since its inception
RONA, Réno-Dépôt and Dick’s Lumber. possible disruption to our business. in 2011, Sycamore Partners’ investors
“The sale of our Canadian retail business We have put in place appropriate include leading endowments, financial
is an important step toward simplifying the measures to ensure a seamless transition to institutions, family offices, pension plans
Lowe’s business model. While this business new ownership, with minimal disruption for and sovereign wealth funds. For more
represents approximately 7% of our full our 26,000 associates. It will remain business information on Sycamore Partners, visit www.
year 2022 sales outlook, it also represents as usual, including unchanged compensation sycamorepartners.com.
approximately 60 basis points of dilution on and benefits.
our full year 2022 operating margin outlook,” In recent years, we have put in place a jeld-wen of canada donated
said Marvin R. Ellison, Lowe’s chairman, strong leadership team, invested strategically,
president and CEO. and simplified our business, which puts us in a $25,000 to support people affected
“We remain confident in our short and great position for the future. by hurricane fiona
long-term outlook for the U.S. business, Under Sycamore ownership, we
underscored by improved sales trends and will maintain a strong commitment
strong profit flow-through in the third quarter, to our Canadian- and Quebec-based
as well as our expectations for solid business vendors, including through our ongoing
performance for the remainder of 2022. By involvement in the “Well Made Here”
executing this transaction, we will intensify initiative, meant to encourage the purchase of
our focus on enhancing our operating domestically manufactured quality products. In support of those affected by Hurricane
margin and ROIC, taking market share in The sale to Sycamore is a positive Fiona in Eastern Canada, and to help them
the U.S. and creating greater shareholder outcome for Lowe’s Canada and all our get back into safe and comfortable homes
value,” Ellison continued. “I want to thank stakeholders, including our associates. and businesses, JELD-WEN of Canada has
our entire Canadian team for their hard work donated $25,000 to the Canadian Red
and dedication to our customers. We look Advisers Cross. Following the devastating impact of
forward to working with Sycamore Partners in Goldman Sachs & Co. LLC is serving as financial Hurricane Fiona, the Canadian Red Cross was
executing a seamless transition.” adviser to Lowe’s, and Cleary Gottlieb Steen on the ground helping to provide emergency
“We are honored to partner with Lowe’s & Hamilton LLP and Stikeman Elliott LLP are shelter, financial aid, food, and clothing to
to establish Lowe’s Canada and RONA as serving as legal counsel. RBC Capital Markets those affected. The Government of Canada
a standalone company headquartered in is serving as financial adviser to Sycamore matched donations made by individuals and
Boucherville, Quebec,” said Stefan Kaluzny, Partners, and Kirkland & Ellis LLP and Blake, corporations up until October 23rd, 2022,

Managing Director of Sycamore Partners. Cassels & Graydon LLP are serving as legal doubling the impact of JELD-WEN’s donation
“We look forward to working with the counsel. to $50,000.
company’s management team to build on its “We understand that many of our
83-year history as a leading Canadian home About Lowe’s customers, employees, and business partners
improvement business serving families, Lowe’s Companies, Inc. (NYSE: LOW) is a are facing significant challenges in the
builders, and contractors in their communities FORTUNE® 50 home improvement company aftermath of Hurricane Fiona. At JELD-WEN,
across the country.” serving approximately 19 million customer our values guide us in everything we do. We
“We are excited to work with Sycamore transactions a week in the United States and appreciate the support of our customers from
Partners on this next chapter of growth for Canada. With fiscal year 2021 sales of over coast-to-coast, and we hope that our donation
our business.” said Tony Cioffi, president of $96 billion, Lowe’s and its related businesses will make a difference to our neighbours
Lowe’s Canada. “Together, we will remain operate or service nearly 2,200 home along the Atlantic, helping them to rebuild
committed to supporting our associates, our improvement and hardware stores and employ and recover from this heartbreaking event,”
Canadian- and Quebec-based vendors and over 300,000 associates. Based in Mooresville, says Rob Conway, JELD-WEN of Canada
our dealer network.” N.C., Lowe’s supports the communities it serves President.
The transaction is expected to close in through programs focused on creating safe,
early 2023, subject to customary closing affordable housing and helping to develop the
conditions and regulatory approvals. In next generation of skilled trade experts. For
connection with the preparation of the more information, visit Lowes.com.
company’s financial statements for the third

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