Lowe's Canada To Acquire Leases Of 13 Former Target Stores
LOWE'S CANADA TO ACQUIRE LEASES OF 13 FORMER TARGET STORES
Accelerates Lowe's Expansion Across Canada
TORONTO, ON — Lowe's Canada announced today it has reached agreement to acquire the leases of 13 former Target Canada locations and to purchase Target's Milton, Ontario distribution centre for a total purchase price of approximately C$151 million. This acquisition came as part of a real estate auction following Target's decision to cease operations in Canada.
"Since opening stores in Canada in 2007, we have developed a successful model for providing the Canadian customer with outstanding service and quality products for the home," said Sylvain Prud'homme, president of Lowe's Canada. "These additional locations will accelerate our expansion across the country, enhancing our presence in Western Canada and strengthening our base in Ontario. We are excited to bring Lowe's to more customers in more communities in Canada, further demonstrating our commitment to this important market."
The store sites are located across Canada, many in markets where Lowe's is underpenetrated. The distribution centre in Milton, Ontario is strategically located to serve Lowe's current and future stores. As a result of the transaction, approximately 2,000 jobs will be created in Canada. The proposed acquisitions are subject to court approval in Target Canada's proceedings under the Companies' Creditors Arrangement Act and certain other customary conditions. The court run process is expected to be completed by June 30, 2015.
About Lowe's Canada
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company serving approximately 16 million customers a week in the United States, Canada and Mexico through its stores and online. With fiscal year 2014 sales of $56.2 billion, Lowe's has 1,840 home improvement and hardware stores and more than 265,000 employees. In Canada, Lowe's opened its first stores in December 2007 and now operates 38 stores in Ontario, Alberta, Saskatchewan and British Columbia with more than 6,000 employees.