Sylvain Prud’homme downplays the significance of his francophone roots for making Lowe’s Cos. a far more attractive suitor to Quebec-based home improvement rival Rona Inc.
Why Lowe’s $3.2-billion Rona acquisition will probably undergo this time around around
Never stop improving.
It seems Lowe’s Cos Inc. takes its very own slogan to heart in the ambition to get Rona Inc., finally making a deal that has wooed the Boucherville, Que.-based do it yourself company’s shareholders, board of directors and even the notoriously protectionist Quebec government.
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“I think it’s giving way too much credit to 1 individual, obama of Lowe’s Canada said having a chuckle Thursday, each day after the retailer’s U.S. parent company announced a friendly takeover of the Boucherville, Que.-based home improvement chain.
But Prud’homme, who had been hired by Lowe’s just five months after the company walked from its spurned $1.8-billion takeover bid of Rona this year, undoubtedly had a further knowledge of retail and politics in French and English Canada than his predecessor Alan Huggins, a united states who had worked at Lowe’s within the U.S. before taking the helm from the Canadian division in 2009.
Prud’homme helped a number of major grocery retailers before he landed at Lowe’s, most recently at Loblaw, but throughout his tenure as vice-president of operations at Wal-Mart Canada he defended the company after its contentious closure of the unionized store in Jonquire, Que.
“Most of my senior roles have been in English Canada. But I be aware of whole market well,” he said within an interview. Beyond a higher premium – this time Lowe’s offered $3.2 billion and the Canadian dollar is trading at 72 cents, not par because it was at 2012 – he states both companies are stronger now.
“I think that’s really what made the main difference – from a growth perspective we’re in a much better place,” he explained. “(Rona’s) leadership team has completely changed. This time around, I think most people have an excellent take on the potential of this new organization. These two organizations are likely to bring a lot to one another.”
Related
- Lowe’s Cos to buy Canada’s Rona for $3.2 billion in cash to create do it yourself giantRona plans new stores next year as profit surges 30% on same-store sales boostThe lesson from Lowe’s failed bid for Rona? In Quebec, any organization can be protected
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Prud’homme is keen to emphasise that the deal is driven more by growth compared to potential synergies, beyond saving the $3 million to $4 million per year Rona spent on as being a publicly traded company.
Lowe’s headquarters is moving to Boucherville, even as most of its current head office employees reside in Toronto. “We could keep an office in Toronto,” Prud’homme said, adding the facts haven’t been finalized of the hq move. “With the growth we’ve put into the plan, there’s room for everybody.”
He extends that philosophy to the merged company’s diverse store base. Many of Rona’s a lot more than 500 stores are small, local dealer-owned hardware stores, and though they may benefit from adding a number of Lowe’s product mix, and vice-versa, Prud’homme says it is important the 2 remain very distinct retail entities.
“A large amount of people think that since it is one company that everything has to be blended and needs being beige,” he says. “That’s not what is going to happen – this is the beauty of the network. We’re really able to focus these formats which brands behind customer segments that are different. It’s always some risk when you attempt to blend everything.”
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