Montreal-based home hardware retailer Rona Inc. has bought another family-run lumber business in B.C.
Rona's acquisition of Burnaby's Dicks Lumber and Building Supplies Ltd. for an undisclosed sum will add to its 51 stores across B.C. The deal will also double Rona's presence in the commercial and professional specialist market.
Rona said it was attracted to Dick's Lumber because of its strong management team and relatively high profit margins. The company announced that Dick's, which employs approximately 200 people, had more than $100 million in sales in the past year and has good potential for further growth.
Rona said the deal, which is scheduled to close in 2007's fourth quarter, will add to the company's earnings per share.
The acquisition comes a year after Rona bought Curtis Lumber and Mountain Building Supplies. In the past two years, Rona has opened or acquired 14 new stores in B.C.