Friday, April 07, 2006

Rona Acquiring Supplier of Building Materials for the Housing

Rona is buying Chester Dawe Ltd., the leading supplier of building materials and hardware products for the housing industry in the St. John's area, the companies announced Friday.

Financial terms of the deal weren't disclosed. "We are happy to complete the sale of the operating assets of our company to a Canadian chain that understands how we go to market and one that will continue to serve all our customers in the Chester Dawe Ltd, tradition going back to 1945," Philip Budden, general manager of Chester Dawe, said in a statement.

Budden will remain with the company as general manager and all employees will continue to work with Rona, the company said.

Chester Dawe has nearly 400 employees during the peak season and posted sales of approximately $80 million in 2005.

The company has eight retail outlets - three in St. John's and the rest throughout Newfoundland and Labrador - and operates a roof and floor truss factory.

Rona president-CEO Robert Dutton said the acquisition of Chester Dawe "fits perfectly into our business development plan."

"It gives us the critical mass we need in Newfoundland to be able to serve this market effectively," Dutton added.

Rona said it would finance the transaction through its existing credit facilities.

Rona operates a network of about 580 franchise, affiliate and corporate stores of various sizes and formats across Canada. It has more than 24,000 employees and generates $5 billion in annual sales.


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