Rona Inc, the home improvement and hardware retail chain, has entered into an agreement to sell off specific business areas to Emco Corp. The said sale is priced at Can$125 million and the businesse include its air conditioning, heating, plumbing and ventilaton interests.
Previously, Rona said that it was in dicussions with prospective buyers and is currently undertaking a three year restructuring plan to better prepare itself against the market competition.
The company further announced that it is expecting a pre-tax loss amounting to Can$125 million in the second quarter of the year in relation to its recent sale of its Commercial and Professional market divisions.
The division to be sold off to Emco operates under various names located all accross Ontario, Quebec and British Columbia. These brand names include Don Park, MPH Supplies and Don Park.
The deal is subject to regulatory approvals as Emco is wholesaler-distributor of products in the construction inudustry.
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