Lowe’s Canada says it has reached an agreement to sell its Ace Canada business to  Peavey Industries as the company continues to restructure. The home improvement retailer says the agreement will see Lowe’s Canada sell the Ace assets to Peavey Industries, which operates 92 stores in the country under the Peavey Mart, MainStreet Hardware and TSC banners for an undisclosed price.

Lowe’s Canada will assign to Peavey the licence and distribution agreements with the subsidiary of Ace Hardware Corp. in Canada and the corporate Ace Hardware store in The Pas, Man. It will also transfer agreements with 104 independent Ace Hardware stores in Canada that will see Peavey gradually assume responsibility to supply the stores and its website.

Lowe’s will continue to be wholesale supplier of lumber and building materials for Peavey Industries’ independent dealers after the transition period. The Canadian division of the U.S. retailer says the business being transferred represents less than 10% of the total sales volume of Lowe’s affiliated dealer division. 

“We understand Canadian communities and we are looking forward to building even stronger community relationships, strengthening our bond with our loyal customers,” stated Doug Anderson, president and CEO of Peavey Industries LP. “Ace Canada is a natural extension to Peavey Industries for a number of reasons: we relate strongly to their dedication to ‘local and loyal’, we appreciate their commitment to providing value to customers, and we mirror their devotion to excellence in customer service. Also, it is a great opportunity for us to serve new markets with the addition of this great brand.”

“This is an exciting new chapter for Ace Hardware International and the Canadian Ace Hardware retailers,” said Jay Heubner, President and General Manager of Ace Hardware International. “We are thrilled to team up with Peavey Industries, an organization that shares our values and has a strong commitment to service and community. We’re confident Peavey Industries will provide the independent Ace retailers the best service and support to help them succeed and ensure the continued growth of the Ace Hardware brand in Canada.”

Want to learn more?

CHHMA members are welcome to come out to hear Peavey Industries President & CEO Doug Anderson present at a CHHMA Breakfast Speaker event on the morning of April 23rd at the CHSI facility in Mississauga and find out how Peavey plans to move forward with the Ace Canada business in addition to their Peavey Mart, TSC Stores and Main Street Hardware banners.  Click here for more details.

Source: Globe and Mail
Source: The Star
Source: Lowe’s Canada