Lowe’s Canada and Peavey Industries LP, a Canadian farm, ranch and hardware retailer, have announced that Peavey Industries is acquiring the assets of Ace Canada.
RONA, a company that is part of the Lowe’s Canada group, will sell the assets of the Ace Canada business, which RONA has owned since 2014.
Lowe’s gained the Ace Canada licensing agreement in 2016 when it acquired RONA. The big-box retailer then condensed Ace Canada’s distribution operations to share efficiencies with Lowe’s Canada, with plans to help Ace grow its store count in Canada to 200 locations.
Under the new purchase agreement, RONA will assign to Peavey Industries the license and distribution agreements between RONA and Ace Hardware International Holdings for the Ace Hardware brands in Canada.
Lowe’s Canada will continue to supply lumber and building materials for the independent retailers affiliated with Peavey Industries, which currently maintains 92 retail stores under three different brands.
Ace Hardware International is a division of Ace Hardware Corp., the retailer-owned cooperative headquartered in Oak Brook, Illinois.
“This is an exciting new chapter for Ace Hardware International and the Canadian Ace Hardware retailers,” says Jay Heubner, president and general manager of Ace Hardware International. “We are thrilled to team up with Peavey Industries, an organization that shares our values and has a strong commitment to service and community.”
Ace Hardware has 104 independently owned stores across Canada. During a six-month transition period, Peavey Industries will gradually assume responsibility for supplying products to the independent stores and overseeing the Ace Canada retail operating systems and Ace Canada website.
The companies did not disclose financial terms of the agreement.
“We are confident this transition will be positive for all parties involved,” says Tony Cioffi, executive vice president of finance for Lowe’s Canada. “While it will allow Lowe’s Canada to focus its energy exclusively on the RONA banner for its affiliated dealer network, Ace-affiliated dealers across [Canada] will find in Peavey Industries a partner whose value proposition is better adapted to their operating reality and customers’ needs.”