Shares of Lowe’s Companies (NYSE: LOW) were up in morning trading on Friday after the home improvement retailer announced that it will sell its Canadian retail business to Sycamore Partners for $400 million in cash. Sycamore Partners is a private equity firm specializing in retail, consumer and distribution-related investments.
Marvin R. Ellison, Lowe’s Chairman, President and CEO stated, “The sale of our Canadian retail business is an important step toward simplifying the Lowe’s business model. While this business represents approximately 7% of our full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on our full year 2022 operating margin outlook.”
Ellison added that, “By executing this transaction, we will intensify our focus on enhancing our operating margin and ROIC, taking market share in the U.S. and creating greater shareholder value.”
