TORONTO, Ontario—Lowe’s Canada 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.
(For more MM&D coverage of the target asset sale click here: Walmart picks up Cornwall DC).
“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 distribution centre in Milton, Ontario is strategically located to serve Lowe’s current and future stores. The store sites are located across Canada, many in markets where Lowe’s is underpenetrated. 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.