October 07, 2010 08:30 ET

RONA Commercial and Professional Market Division to Acquire Ontario HVAC Specialist Don Park

Transaction Provides Strong Growth Potential

BOUCHERVILLE, QUEBEC--(Marketwire - Oct. 7, 2010) - RONA inc. (TSX:RON), the largest Canadian distributor and retailer of hardware, renovation and gardening products has signed an agreement to acquire, through its subsidiary Noble (, 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. Founded in 1972, the business has been owned since 2005 by TerraVest Income Fund, a diversified trust (TSX: TI.UN). Don Park has a strong growth profile generating more than $90 million in sales with more than 400 experienced employees. The transaction has been finalized pending certain conditions, including regulatory approvals and is expected to close by the end of December 2010.

"We're very pleased with this acquisition as it provides strong growth potential in the plumbing and HVAC market in Ontario and opens up many development opportunities in other regions of Canada. The acquisition also gives us instant market share gain in the HVAC segment shortly after having expanded Noble's operations into this area. This transaction is exactly in line with our plan to establish a national platform in the commercial and professional market by becoming a leader in specific segments of this market," said Michael Storfer, Vice President of RONA's Commercial and Professional Market division.

"The customer base is highly complimentary and will enable us to rapidly leverage the infrastructure and sales force of both organizations. The transaction also provides important organic growth potential for both plumbing and HVAC operations by opening new markets for both. The consolidation of plumbing and HVAC product lines allows us to offer a much deeper breadth of products to our diversified industrial, commercial, institutional and professional customers," added Michael Storfer.

Don Park President and CEO, Peter Olierook is pleased with the agreement with RONA. "Our customers know they will still be able to count on our employees' know-how to get the same top-quality service they're used to. And we know that joining ranks with RONA will give our employees access to great development opportunities and a stimulating work environment. We're very enthusiastic about being part of a major company like RONA as it will give the opportunities for Don Park to have the resources to accelerate its development in both distribution and manufacturing of HVAC and related products," Peter Olierook added.

The acquisition of Don Park meets RONA's rigorous acquisition criteria:

  • Strong management team;

  • Profitable business;

  • Accretive to earnings per share;

  • Operate in a sector related to RONA's main activities thus generating recurring synergies;

  • Strong growth potential.

Establishing a national platform in the commercial and professional market

The acquisition of Don Park is another step toward achieving RONA's objective of establishing a national platform in the commercial and professional market. This is the third acquisition of the year for RONA's Commercial and Professional division. Created at the end of 2007, this division will include, after the close of this transaction, 56 branches and stores, four distribution centers and three manufacturing facilities in British Columbia, Ontario and Quebec:

  • 23 branches specialized in plumbing operating under the Noble banner in Ontario;

  • 1 plumbing and HVAC distribution center operating under the Noble banner in Ontario;

  • 14 branches specialized in HVAC operating under the Don Park banner in Ontario;

  • 1 HVAC distribution center operating under the Don Park banner in Ontario

  • 3 manufacturing facilities specialized in HVAC and related products operating under the Don Park banner in Ontario;

  • 2 finishing plumbing boutiques operating under Les Boutiques Eaudace banner in Quebec;

  • 2 plumbing distribution centers in Quebec;

  • 11 stores with large lumberyards operating under the Coupal banner in Quebec;

  • 6 stores with large lumberyards operating under the Dick's Lumber banner in British Columbia.

With the acquisition of Don Park, the Commercial and Professional Market division will generate more than $600 million in sales on a run-rate annualized basis and will count on more than 1,600 experienced employees in total.


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 October 7, 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.


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


Don Park LP is a leading manufacturer and provider of products for the comfort and safety of people at home and at work. The company has over 30 years experience serving the needs of architects, designers and contractors through wholesale operations in the HVAC and Fire protection industries. Changing environmental, energy conservation and safety requirements make these dynamic and growing markets.


The Fund is an unincorporated, open-ended, limited purpose, mutual fund trust established under the laws of the Province of Alberta pursuant to a declaration of trust dated May 3, 2004. The Fund was established for the purpose of investing in a diversified group of income producing businesses located primarily in Canada. The Fund has invested in five portfolio businesses: RJV, one of the largest providers of wellhead processing equipment for the natural gas industry in western Canada, Diamond, a market leader in providing well servicing to the oil and natural gas sector in southwestern Saskatchewan, with a growing presence in Alberta, Don Park, one of Canada's largest manufacturers and suppliers of heating, ventilation and air conditioning (HVAC) products, Beco, one of the largest Canadian designers, manufacturers and importers of home textile products and Ezee-On, manufacturer of heavy-duty equipment for large acreage grain farms and livestock operations.

Contact Information

  • Media
    Daniel Richard
    Director, Corporate Communications
    RONA inc.
    514-599-5900, ext. 5751
    Financial community
    Stephane Milot
    Senior Director, Investor Relations
    RONA inc.