USA - Lowe's Companies, Inc.  announced that it has entered into a definitive agreement to sell its Canadian retail business to Sycamore Partners, a private equity firm specializing in retail, consumer and distribution-related investments, for USD 400 million in cash, and performance-based deferred consideration.

Based in Boucherville, Quebec, Lowe's Canadian retail business operates or services approximately 450 corporate and independent affiliate dealer stores in a number of complementary formats under different banners, which include RONA, Lowe's Canada, Réno-Dépôt and Dick's Lumber.

"The sale of our Canadian retail business is an important step toward simplifying the Lowe's business model. While this business represents approximately 7% of our full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on our full year 2022 operating margin outlook," said Marvin R. Ellison, Lowe's chairman, president and CEO.

The transaction is expected to close in early 2023, subject to customary closing conditions and regulatory approvals. In connection with the preparation of the company's financial statements for the third quarter of 2022, the company expects to record a pre-tax non-cash impairment charge of approximately USD 2.0 billion related to its Canadian retail business.

Lowe’s is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States.

Lowe's is the second-largest hardware chain in  in the world, behind The Home Depot but ahead of European retailers Leroy Merlin, B&Q, and OBI.