rona issues statement regarding interest expressed by us
Transcription
rona issues statement regarding interest expressed by us
PRESS RELEASE FOR IMMEDIATE RELEASE RONA ISSUES STATEMENT REGARDING INTEREST EXPRESSED BY U.S.-BASED LOWE’S COMPANIES, INC. Boucherville, Quebec, July 31, 2012 – RONA inc. (“RONA” or the “Corporation”) (TSX: RON, RON.PR.A), the largest Canadian distributor and retailer of hardware, renovation and gardening products, confirms that its Board of Directors has unanimously determined that an unsolicited, non-binding acquisition proposal recently received from U.S.-based Lowe’s Companies, Inc. (“Lowe’s”) is not in the best interests of RONA and its stakeholders. The Board believes that in the best interests of RONA and its stakeholders, the Corporation should remain focused on executing its business plan with a view to capturing significant opportunities that it sees for its business. With a view to ensuring market transparency, RONA believes that it is important for its shareholders and other stakeholders to be made aware of these developments. RONA’s Board carefully considered Lowe’s non-binding proposal On July 8, 2012, RONA received an unsolicited, non-binding proposal from Lowe’s to acquire all of RONA’s issued and outstanding shares at a price of $14.50 per share. Following receipt of the non-binding proposal, RONA’s Board of Directors and a special committee of independent directors, with the assistance of Scotiabank and BMO Capital Markets as their financial advisors and Norton Rose Canada LLP and Davies Ward Phillips & Vineberg LLP as their legal advisors, commenced a review and evaluation of Lowe’s non-binding proposal. On July 26, 2012, RONA informed Lowe’s that RONA’s Board of Directors and special committee had met on several occasions and had carefully reviewed and considered Lowe’s unsolicited expression of interest with its financial and legal advisors, and that the Board of Directors of RONA had unanimously determined that Lowe’s proposal is not in the best interests of RONA and its stakeholders. RONA’s strategic focus remains to execute on its business plan with a view to capturing the significant opportunities that it sees for the business. In its July 8 proposal, Lowe’s indicated that it had held discussions with a number of shareholders of RONA and proposed entering into a board-supported transaction. In light of these statements, RONA requested that Lowe’s confirm that it would not pursue a transaction that was not supported by RONA’s Board. On July 28, 2012, Lowe’s responded that it was still its desire to proceed with a board-supported transaction. Lowe’s also indicated that it remained very interested in pursuing a transaction with RONA and was going to consider all of its options. RONA will provide further updates to the market as and when circumstances warrant. About RONA RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. The Corporation operates a network of close to 800 corporate, franchise and affiliate stores of various sizes and formats under several banners, and a network of 14 hardware and construction materials distribution centres which are flexible and perfectly adapted to the diverse needs of its clientele. RONA is also a leader in the specialized plumbing and HVAC market, primarily serving commercial and professional customers with a network of close to 60 sales outlets and four distribution centres across the country. In total, RONA supplies nearly 1,500 sales outlets, of which some 840 are under one of its banners, as well as close to 600 clients, independent dealers, in its distribution network. With close to 30,000 employees working under its family of banners in every region of Canada, the RONA store network generates consolidated sales of $4.8 billion and over $6 billion taking into account the total impact of the retail sales of franchise dealers, affiliates and other independent dealers who buy their supplies at RONA. For more information, please visit rona.ca Contacts: Media Michelle Laberge, Senior Director Communications and Public Affairs RONA inc. 514-599-5114 [email protected] Financial Community Stéphane Milot Senior Director, Investor Relations RONA inc. 514-599-5951 [email protected] RONA: An important driver for the Quebec regions 14,661 EMPLOYEES 343 STORES Corporate and franchised stores Affiliated stores Affiliated stores 8,052 253 4,944 Franchised stores 1,241 Administrative centres Abmast CBV inc. Duchesne et Fils Garant Jardins Paquette Les Bois Martek Les moulures Boulanger Luxo Marbre Soleno Techniseal Venmar 73 424 Distribution centres Boucherville and Terrebonne Corporate stores RONA’S MAIN SUPPLIERS EMPLOYS MORE THAN 33,000 PEOPLE IN QUEBEC 47% OF PRODUCTS SOLD BY RONA COMES FROM QUEBEC COMPANIES Companies 17 Cities % of sales to RONA (between 20% and 75%) St-Hyacinthe St-Étienne-des-Grès Yamachiche St-François, Montmagny Sutton Grand-Mère Warwick St-Rémi St-Jean-sur-Richelieu Candiac Drummondville TOTAL BENEFITS OF MORE THAN $2 BILLION Purchasing products Marketing RONAdvantages Program Information technologies Corporate investments Dealers investments Transportation and logistics Acquisitions Million $ 1,548 79 171 29 78 40 26 46 2,017 RONA: Responsible and at the vanguard in sustainable development OUR ENVIRONMENTAL POLICIES • • • • • • Forest Products Procurement Policy (2008) Policy on the Sale of Pesticides across stores from the RONA network (2008) Policy on Plastic Shopping Bag (2009) Responsible Procurement Policy (2010) Paper Products Use and Procurement Policy (2011) Sustainable Policy Packaging (2011) CLOSE TO $3 MILLION ANNUALLY RONA’S CONTRIBUTION RONA’S EMPLOYEES CONTRIBUTION Maison du développement durable Vélotour au profit de la Sclérose en plaques Vélotour Sclérose en plaques Centraide Cepsum Marche de la mémoire RONA au profit de la Société Croix-Rouge RONA Foundation d’Alzheimer Fondation du cancer du sein Roulons pour le diabète juvénile RONA: An important driver of economic development in Canada 838 STORES UNDER DIFFERENT BANNERS 28,858 EMPLOYEES Corporate and franchised stores RONA affiliated stores 19,127 7,533 Affiliated stores Corporate stores Commercial and professional RONA franchised stores 352 55 19 172 240 1,399 Distribution centres Administrative centres + 579 CUSTOMERS (INDEPENDENT DEALERS) OF OUR DISTRIBUTION CENTRES 84 % OF PRODUCTS SOLD BY RONA COMES FROM CANADIAN COMPANIES RONA is a strategic customer for many suppliers across the country and represents an important part of sales for the companies listed below Quadra Wood, Abbotsford, CB Plasti-Fab Ltd., Calgary, AB Expocrete, Saskatoon, SK Barkman Concrete, Strenback, MB Total Forest, Guelph, ON Aluminart Products Ltd, Brampton, ON Garant, St-François Montmagny, QC Duchesne et Fils, Yamachiche, QC Imperial Manufacturing Group, Richibuctou, NB Acan Windows, Paradise, NL TOTAL BENEFITS OF MORE THAN $3.3 BILLION TRU affiliated stores RONA, Réno-Dépôt and TOTEM corporate stores 799 RONA’S MAIN SUPPLIERS EMPLOYS CLOSE TO 80,000 CANADIANS RONA’s 10 largest suppliers represent a purchasing volume of $687 million, or 25% of our Canadian purchases Tolko Marketing and Sales, Vernon, BC CanWel Building Materials, Vancouver, BC AFA Forest Products, Bolton, ON Taiga Forest, Boucherville, QC Akzo Nobel Canada, Longueuil, QC BP Canada, Lasalle, QC Moulding and Millwork, Montréal, QC Goodfellow, Delson, QC Ceramic Mono Serra Canada, Anjou, QC AllGuard Wood Products, Lachine, QC Purchasing products Marketing RONAdvantages program Information technologies Corporate investments Dealers investments Transportation and logistic Acquisitions Million $ 2,804 130 171 40 78 50 26 46 3,345 RONA: Responsible and at the vanguard in sustainable development OUR ENVIRONMENTAL POLICIES • • • • • • Forest Products Procurement Policy (2008) Policy on the Sale of Pesticides across stores from the RONA network (2008) Policy on Plastic Shopping Bag (2009) Responsible Procurement Policy (2010) Paper Products Use and Procurement Policy (2011) Sustainable Policy Packaging (2011) CLOSE TO $4 MILLION ANNUALLY RONA’S CONTRIBUTION Maison du développement durable Vélotour Sclérose en plaques Cepsum Croix-Rouge Fondation RONA Chaire en éthique HEC Ensemble avec nos athlètes Société d’Alzheimer Fibrose kystique Fondation Marie-Vincent RONA’S EMPLOYEES CONTRIBUTION Vélotour au profit de la Sclérose en plaques Centraide Marche de la mémoire RONA au profit de la Société d’Alzheimer Fondation du cancer du sein Roulons pour la recherche sur le diabète juvénile Ride to Conquer cancer Société canadienne du cancer Cyclo-défi et week-end pour vaincre les cancers féminins Children’s Aid Foundation Langley Food Bank Support Habitat for Humanity FACT SHEET RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. The Corporation operates a network of close to 800 corporate, franchise and affiliate stores of various sizes and formats under several banners, and a network of 14 hardware and construction materials distribution centres which are flexible and perfectly adapted to the diverse needs of its clientele. RONA is also a leader in the specialized plumbing and HVAC market, primarily serving commercial and professional customers with a network of close to 60 sales outlets and four distribution centres across the country. In total, RONA supplies nearly 1,500 sales outlets, of which more than 830 are under one of its banners, as well as close to 600 clients, independent dealers, in its distribution network. With close to 30,000 employees working under its family of banners in every region of Canada, the RONA store network generates consolidated sales of $4.8 billion and over $6 billion taking into account the total impact of the retail sales of franchise dealers, affiliates and other independent dealers who buy their supplies at RONA. For more information, please visit rona.ca. 2011 SALES BREAKDOWN BY SECTOR OF ACTIVITIES 25% 2011 FINANCIAL RESULTS SUMMARY Fiscal years ended December 25, 2011 December 26, 2010 4,804.6 4,819.6 Revenues 75% 240.6 336.3 (95.8) (28.5%) 269.2 336.3 (67.1) (20.0%) 5.01% 5.60% Net earnings (loss) attributable to participating shares Net earnings (loss) attributable to participating shares (excluding unusual items) Net earnings (loss) diluted per share ($) Net earnings (loss) diluted per share ($) (excluding unusual items) 45% 24% Cash flow from operating activities 6.98% 6.98% 2011 CANADIAN MARKET SHARE 16% 13% 2% ‐ ‐138 b.p. (223.8) ‐ 86.9 137.4 (50.5) (36.8%) (0.66) 1.05 (1.71) 0.66 1.05 (0.39) (37.1%) 230.2 138.1 92.1 66.7% A HEALTHY BALANCE SHEET $1,115M Retained earnings or others $674M $450M $771M Share capital Shareholders’ equity ‐197 b.p. 137.4 19% 50% ‐ (86.4) $1,886M 2% (0.3%) EBITDA (excluding unusual items) EBITDA margin (excluding unusual items) 29% (15.0) % change from 2010 EBITDA EBITDA margin 2011 SALES BREAKDOWN BY REGION $ change from 2010 Total net debt Unused credit facilities ‐ A UNIQUE BUSINESS MODEL MULTIPLE STORE FORMATS BIG‐BOX STORES PROXIMITY STORES SATELLITE STORES THE STRENGTH OF OUR NETWORK (MULTIPLE OWNERSHIPS, MULTIPLE BANNERS) 352 240 172 55 704 79 AFFILIATES CORPORATE AFFILIATES 19 COMMERCIAL AND FRANCHISES PROFESSIONAL 2012 BUSINESS PLAN: NEW REALITIES, NEW SOLUTIONS The RONA’s 2012 business plan acknowledges the need to adapt the offering in our industry to the new expectations and changes in consumer behaviour of many THREE FINANCIAL PRIORITIES consumers. For a number of years RONA has foreseen the emergence in the market of proximity stores that meet the demands of consumers who want a higher level of 1. IMPROVE EFFICIENCY service. RONA pioneered in this area by reinventing the proximity store in the early 2. OPTIMIZE CAPITAL STRUCTURE 2000s, and these stores have been a great success. This new plan capitalizes on our 3. INCREASE RETURN ON CAPITAL ongoing research into consumer expectations and behaviours, as well as our continual experimentation with new store formats and new retail sales approaches. It combines the best of these developments in a new proximity store format. The new approach brings us closer to Canadian consumers while taking into account the new social and economic realities they are facing. The plan will provide important leverage in improving our return on capital, as it will generate an estimated annualized contribution to EBITDA of $10 million starting in the fourth quarter 2012, more than $30 million for fiscal 2013, and will achieve its full potential of more than $40 million starting in 2014. The program is composed of three major areas, and cross‐functional teams are already working on them: 1. Introducing, in Spring 2012, a new integrated digital platform, which includes the new Web site rona.ca, to orient each different type of consumer with their renovation projects and support all of our retail activities. 2. Rolling out the new proximity store concept under the RONA banner, combining the strengths of the TOTEM model with best practices in RONA’s proximity stores, in 20% of the RONA corporate store network. 3. Continued development of the commercial and professional segment by optimizing recent investments, opening 9 new complementary sales outlets and seeking out potential acquisitions in this still very fragmented market. FOR FURTHER INFORMATION FINANCIAL COMMUNITY Stéphane Milot, Senior Director of Investor Relations Telephone: 514‐599‐5951 ‐ Email: [email protected] MEDIA Michelle Laberge, Senior Director of Public Affairs and Communications Telephone: 514‐599‐5114 – Email: [email protected] www.rona.ca This Fact Sheet includes “forward‐looking statements” that involve risks and uncertainties. All statements other than statements of historical facts included in this Fact Sheet, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Corporation 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 Fact Sheet reflect the Corporation’s expectations as at July 13, 2012, and are subject to change after this date. The Corporation 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 Corporation’s actual results to differ from current expectations, please also refer to the “Risks and uncertainties” section in RONA’s annual report.