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Rona Inc., the largest Canadian distributor and retailer of hardware, renovation and gardening products, has entered into an agreement to sell its Commercial and Professional Market division specializing in plumbing, heating, ventilation and air conditioning (HVAC) systems to Talisker Plumbing Corporation, a subsidiary of EMCO Corporation.
The transaction, which is subject to regulatory approvals, is expected to net approximately C$215 million ($209 million). Rona expects to record a pre-tax loss of approximately C$125 million resulting from the transaction, mostly related to a write-down of the division’s goodwill.
Rona “has been focusing on unlocking the full potential of its retail and distribution business,” according to a company release.
The Commercial and Professional Market division was created when RONA acquired Noble in 2007. The division, which has expanded through acquisitions, has 1,400 employees in Ontario, Quebec and British Columbia and has been operating under the Noble, Don Park, MPH Supplies, Boutique Eaudace and Boutique Plomberie Décoration 25 names.
