Lowe's Canada and Peavey Industries LP enter into an asset purchase agreement in connection with the Ace brand in Canada

RONA to continue supporting Ace Canada dealers during the 6-month transition period

Boucherville, QC – March 3, 2020 – Lowe’s Canada, one of Canada’s leading home improvement retailers, and Peavey Industries LP, Canada’s largest farm, ranch, and hardware retailer operating 92 stores across Canada under the Peavey Mart, MainStreet Hardware, and TSC banners (“Peavey Industries”), today announced the signing of an Asset Purchase Agreement (the “Agreement”) pursuant to which RONA Inc., a company that is part of the Lowe’s Canada group, will sell the assets of the Ace Canada business to Peavey Industries. As part of the transaction, RONA Inc. will assign to Peavey Industries the licence and distribution agreements between RONA Inc. and Ace Hardware International Holdings, Ltd., a subsidiary of Ace Hardware Corporation, the world’s largest convenience hardware franchise company (“Ace Hardware International”), for the Ace Hardware brands in Canada, and sell the corporate Ace Hardware store located in The Pas, Manitoba. The Agreement also provides for the assignment of the agreements pertaining to 104 independent Ace Hardware stores in Canada, as well as for a 6-month transition period during which Peavey Industries will gradually assume responsibility for the supply of said stores, the Ace Canada retail operating systems, and the Ace Canada website. Lowe’s Canada will continue to act as a wholesaler of lumber and building materials for Peavey Industries’ independent dealers after the transition period. The financial terms of the transaction are not being disclosed.

“With the business transferred to Peavey Industries representing less than 10% of the total sales volume of Lowe’s Canada’s affiliated dealer division, this transaction is in line with our plan that was announced last November to simplify our multiple store banners in order to drive efficiency and reduce operational complexity,” said Tony Cioffi, Executive Vice-President, Finance (GFO), Affiliate Dealers, Dick’s and Real Estate of Lowe’s Canada. “We are confident this transaction will be positive for all parties involved. While it will allow Lowe’s Canada to focus its energy exclusively on the RONA banner for its affiliated dealer network, Ace affiliated dealers across the country will find in Peavey Industries a partner whose value proposition is better adapted to their operating reality and customers’ needs. We will work closely with Peavey Industries throughout the next few months to ensure a smooth and successful transition for all parties,” added Mr. Cioffi.

“We understand Canadian communities and we are looking forward to building even stronger community relationships, strengthening our bond with our loyal customers,” mentioned Doug Anderson, President and CEO of Peavey Industries LP, who feels Ace Canada’s aspirations parallel Peavey Industries’. “Ace Canada is a natural extension to Peavey Industries for a number of reasons: we relate strongly to their dedication to ‘local and loyal’, we appreciate their commitment to providing value to customers, and we mirror their devotion to excellence in customer service. Also, it is a great opportunity for us to serve new markets with the addition of this great brand.”

“This is an exciting new chapter for Ace Hardware International and the Canadian Ace Hardware retailers,” said Jay Heubner, President and General Manager of Ace Hardware International. “We are thrilled to team up with Peavey Industries, an organization that shares our values and has a strong commitment to service and community. We’re confident Peavey Industries will provide the independent Ace retailers the best service and support to help them succeed and ensure the continued growth of the Ace Hardware brand in Canada.”

About Lowe’s Canada

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 18 million customers a week in the United States and Canada. With fiscal year 2019 sales of $72.1 billion, Lowe’s and its related businesses operate or service more than 2,200 home improvement and hardware stores and employ approximately 300,000 associates. Based in Boucherville, Quebec, Lowe’s Canadian business, together with its wholly owned subsidiary, RONA inc., operates or services close to 600 corporate and independent affiliate dealer stores in a number of complementary formats under different banners. These include Lowe’s, RONA, Réno-Dépôt, Ace and Dick’s Lumber. In Canada, the companies have more than 26,000 associates, in addition to approximately 5,000 employees in the stores of independent affiliate dealers operating under the RONA and Ace banners. For more information, visit lowescanada.ca.

About Peavey Industries LP

Peavey Industries LP is the parent to three subsidiary brands totaling 92 retail stores across five provinces. ‘Canada’s Largest Farm and Ranch Retailer’ maintains 49 TSC Stores in Ontario, 40 Peavey Mart stores across Manitoba, Saskatchewan, Alberta and British Columbia, and 3 MainStreet Hardware stores in Alberta. Peavey Industries’ Head Office and distribution centre is located in Red Deer, Alberta with a second distribution centre and Regional Office located in London, Ontario. Proudly 100% Canadian owned, Peavey Industries retail outlets have been serving their loyal customers since 1967. For more information about Peavey Industries LP and their brands, please email [email protected]industries.com.

About Ace Hardware

Ace Hardware is the largest retailer-owned hardware cooperative in the world with more than 5,300 locally owned and operated hardware stores in approximately 70 countries. In 2019, Ace ranked "Highest in Customer Satisfaction with Home Improvement Retail Stores" according to J.D. Power, twelve out of the last thirteen years. Headquartered in Oak Brook, Ill., Ace and its subsidiaries operate an expansive network of distribution centers in the U.S. and have distribution capabilities in Ningbo, China; Colon, Panama; and Dubai, United Arab Emirates. Since 1924, Ace has become a part of local communities around the world and known as the place with the helpful hardware folks. For more information, visit acehardware.com or newsroom.acehardware.com.

*Ace Hardware tied for the highest score in the J.D. Power 2019 Home Improvement Study and received the highest score in the 2007-2017 Home Improvement Retailer Satisfaction Studies of customers’ satisfaction with home improvement retailers. Visit jdpower.com/awards.