Boucherville, Quebec and Winnipeg, Manitoba, October 27, 2010 – RONA inc. (TSX: RON), the largest Canadian distributor and retailer of hardware, renovation and gardening products, and TruServ Canada Inc., a dealer-owned distributor headquartered in Winnipeg, announce that 99.7% of TruServ Canada shares were voted in favour of the amalgamation resolution at the Special Shareholders meeting, held in Winnipeg yesterday.
"We received unprecedented support and response on behalf of our shareholders," said Pierre Levesque, TruServ Canada Chairman of the Board. "We are pleased with the results and look forward to the next steps in the process."
The transaction is pending the approval from the Competition Bureau. Closing is expected to occur before the end of November.
“The results of the vote clearly show that TruServ shareholders believe RONA has the best offering in Canada to help them become leaders and better retailers in their respective regions, for their own benefit and that of their customers, said Robert Dutton, President and Chief Executive Officer of RONA.”
Yesterday’s vote is an important milestone for our distribution business and for the future of independent dealers in Canada as RONA will now offer them three different solutions: the RONA bannered dealer store, the TruServ specialized banner and distribution services for dealers
without banners. This new and unique approach will enable us to leverage each of TruServ Canada’s and RONA’s highly complementary distribution infrastructure/product selection and provide independent dealers with all the tools they need to better compete against other dealers
in their regions as well as from the emergence of large international retailers in Canada,” adds Mr. Dutton.
"We are excited and confident that the NEW TruServ Canada, as part of the RONA family, will provide the combination of product, pricing, new brands and services to allow independent dealers to compete and grow," said Bill Morrison, President and CEO, TruServ Canada.
TruServ Canada operates two warehousing and distribution centers, one of 400,000 square feet in Winnipeg, Manitoba and one of 250,000 square feet in Kitchener, Ontario where it supplies over 40,000 products (SKUs) with another 80,000 available on direct programs. It generates distribution sales of over $100 million and serves more than 650 independent dealers across Canada, including 250 stores under the True Value, V&S, Country Depot and other specialized banners as well as 400 non-bannered stores.
This Press Release includes “forward-looking statements” that involve risks and uncertainties. All statements other than statements of historical facts included in this Press Release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Company may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. The forward-looking statements in this Press Release reflect the Company’s expectations as of October 26, 2010, and are subject to change after this date. The Company expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws. For more information on the risks, uncertainties and assumptions that would cause the Company’s actual results to differ from current expectations, please also refer to the Company’s Annual Report, under the “Risks and Uncertainties” section, available at www.sedar.com and at www.rona.ca.
RONA is the largest Canadian distributor and retailer of hardware, renovation and gardening products. RONA operates a network of nearly 700 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 16 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales.
ABOUT TRUSERV CANADA
TruServ Canada is a 100% dealer-owned company, committed to over 650 independent dealers across Canada. With some of Canada’s most efficient warehousing, product buying and distribution systems TruServ Canada promotes the growth of each of its banners: True Value, V&S and Country Depot stores. Visit TruServ Canada at www.truserv.ca.