RONA INC.
TSX : RON

RONA INC.

December 20, 2010 10:31 ET

RONA Closes Acquisition of Ontario HVAC Specialist Don Park

BOUCHERVILLE, QUEBEC--(Marketwire - Dec. 20, 2010) - RONA inc. (TSX:RON), the largest Canadian distributor and retailer of hardware, renovation and gardening products announces it has closed today the acquisition, through its subsidiary Noble (www.noble.ca), of the assets of Don Park Limited Partnership in Canada. Specialized in the distribution and manufacturing of heating, ventilation and air conditioning products (HVAC), Don Park operates 14 branches as well as three manufacturing facilities and one distribution center in Ontario. Don Park has a strong growth profile generating more than $90 million in sales with more than 400 experienced employees.

The acquisition of Don Park is another step toward achieving RONA's objective of establishing a national platform in the commercial and professional market. Created at the end of 2007, this division now includes 62 branches and stores, four distribution centers and three manufacturing facilities located in different regions of Ontario, Quebec and British Columbia:

  • In the plumbing and HVAC market: 37 branches, two distribution centers and three manufacturing facilities operating under the Noble and Don Park banners in Ontario; two finishing plumbing boutiques operating under Les Boutiques Eaudace banner and two plumbing distribution centers in Quebec; five branches operating under MPH Supply and one finishing plumbing boutique operating under Better Bathrooms banner in British Columbia

  • In the lumber and building material market: 11 stores with large lumberyards operating under the Matériaux Coupal banner in Quebec and six stores with large lumberyards operating under the Dick's Lumber banner in British Columbia.

Taking into consideration the acquisition of Don Park Canada and four other acquisitions completed since the beginning of the year, the Commercial and Professional Market division will generate close to $650 million in sales on a run-rate annualized basis and will count on some 2,000 experienced employees in total.

FORWARD-LOOKING STATEMENTS

This Press Release includes "forward-looking statements" that involve risks and uncertainties. All statements other than statements of historical facts included in this Press Release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Company, may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. The forward-looking statements in this Press Release reflect the Company's expectations as at December 13, 2010, and are subject to change after this date. The Company expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please refer to the "Risks and uncertainties" section of the Company's annual report.

ABOUT RONA

RONA is the largest Canadian distributor and retailer of hardware, renovation and gardening products. RONA operates a network of nearly 700 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 16 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales. For more information, please visit rona.ca.

Contact Information

  • Media:
    RONA inc.
    Daniel Richard
    Director, Corporate Communications
    514-599-5900, ext. 5751
    daniel.richard@rona.ca
    or
    Financial community:
    RONA inc.
    Stephane Milot
    Senior Director, Investor Relations
    514-599-5951
    stephane.milot@rona.ca