Rona Inc. Canada's largest home renovation chain, is expanding its presence in Atlantic Canada with the purchase of five Piercey's stores in the Halifax area for an undisclosed price.
The acquisition from the Bragg Group that is set to close June 21 and will give Rona another 16,650 square metres of retail space in the region.
It is being funded with stock and cash on hand. To avoid dilution for existing shareholders, Rona will redeem the same number of shares as those issued in the transaction.
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Quebec-based Rona wants to increase its market share across the country to 20 per cent from 17.5 per cent by the end of 2011.
Rona president and CEO Robert Dutton said the acquisition reflects the company's goal of becoming the industry leader in every key region of the country.
The addition of smaller "proximity" stores will increase its Atlantic floor space by 47 per cent. It will have nine stores in Newfoundland and Labrador, 10 in New Brunswick and 12 in Nova Scotia, including one big-box store.
Over the past five years, Rona has expanded its Atlantic presence through the acquisition of Chester Dawe in 2006 and Bishop's Building Center in 2008, and by opening new corporate stores and recruiting independent dealer-owners.