December 03, 2007 11:51 ET

RONA Closes Acquisition of Building Supply and Hardware Specialist Dick's Lumber

BOUCHERVILLE, QUEBEC--(Marketwire - Dec. 3, 2007) - RONA (TSX:RON), the leading Canadian distributor and retailer of hardware, home renovation and gardening products, announces that it has received all required regulatory approvals to complete the acquisition of the operating assets and real estate of lumber, building materials and hardware specialist Dick's Lumber. The transaction closed this weekend and financial statements are consolidated into RONA's financial statements as of December 1, 2007.

Announced on September 18, 2007, this transaction follows the 2006 Curtis Lumber and Mountain Building Centres acquisitions and the addition of 14 stores in British Columbia in the past two years through store openings and the recruitment of independent dealers. With the addition of Dick's Lumber's three specialized stores in the Vancouver Area, RONA now has 54 stores in BC and will continue opening new big-box and proximity stores with innovative concepts as well as recruiting independent dealers in the years to come.

Dick's Lumber ( was founded in 1964 by Dick and Delma Alexander. Counting on hundreds of loyal and committed employees, the Company provides superior service, high-quality products and competitive prices to customers throughout the Greater Vancouver Area. The Company, which generated more than $100-million in sales in the last twelve months as well as strong profit margins, has also enjoyed solid growth in the past years. Dick's Lumber is one of the largest contractor building supply companies in Western Canada. The Company counts two 60,000-square-foot specialized stores (including covered warehouses), one in Burnaby and the other one in Surrey, one 32,000-square-foot store (including covered warehouse) in North Vancouver, along with 22 acres of lumberyards. Customers planning home renovation, multi-unit housing complexes or other construction/renovation projects can count on customized service from Dick's more than 200 knowledgeable staff.

The acquisition of Dick's Lumber meets all of RONA's rigorous acquisition criteria:

- Dick's Lumber is expected to add to RONA's earnings per share as of the closing date of the acquisition.

- It operates in a sector related to RONA's main activities, which should lead to recurring annual synergies.

- It has a strong management team and employees sharing the same values.

- The Company is highly profitable in its segment and has good growth potential.


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. 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."


RONA inc. is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of more than 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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