April 4, 2016 Volume xxii, #14

“Have patience. All things are difficult before they become easy.”
—Saadi Shirazi (Persian poet, 1213-1291)

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IMPORTANT MESSAGE FROM HARDLINES: Meet the Buyers update

We regret to inform you of changes to our Meet the Buyers Event on April 28. We were delighted to have both RONA and Lowe’s Canada commit to this event. Now, however, both companies have withdrawn from the event.

We understand this decision. A lot is bound to change over the coming months, and to ask either company at this time to give our vendors any meaningful insight into the next steps would be very difficult, if not impossible.

This change may be an inconvenience for many of you. And for that, we apologize. We realize the impact this will have on those of you who will have to cancel flights and change itineraries.

Please note: We have a commitment from Lowe’s to reschedule. Once a date has been set, more information will be available.

Please feel free to contact me directly if you have any questions, either by email or telephone: 416-489-3396, ext. 1. —Michael

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RONA shareholders OK Lowe’s deal, but without preferred shareholders

BOUCHERVILLE, Que. ― RONA inc. held a special meeting on March 31 at which its shareholders voted to pass a special resolution to approve the company’s sale to U.S.-based Lowe’s Cos. through the acquisition of all of RONA’s common shares $24 per share in cash, and all of the preferred shares $20 per share in cash.

The deal, which had already been approved by RONA’s board of directors, was approved by 99.9% of the shareholders at the meeting, representing 70.2% of the total common shares outstanding as of February 25, 2016.

However, preferred shareholders did not approve the arrangement, with just 25.2% of their votes cast in favour of the arrangement, which required the approval of two-thirds of the votes cast by such shareholders. The votes cast by preferred shareholders represented 43.01% of the total of outstanding five-year preferred shares.

Completion of the deal is not conditional on approval by the preferred shareholders, so those shares will be excluded from the deal. They will continue to trade on the Toronto Stock Exchange under RONA at a price that will be determined by the market, based on rate and credit rating. And current shareholders can still redeem them in five years at a value of $25.

RONA Chairman Robert Chevrier expressed that he was “very, very, very pleased” with the outcome, and affirmed his faith in Lowe’s pledge to maintain head office operations and not to slash jobs. Activist shareholder Jean Dorion, however, called on the federal and provincial governments to hold Lowe’s to its word. “We hope that government authorities pressure [Lowe’s] so that the commitments made by Lowe’s are respected,” he said. RONA CEO Robert Sawyer will be succeeded by Lowe’s Canada President Sylvain Prud’homme.

Finalization of Lowe’s acquisition of RONA still needs to be approved by the Quebec Superior Court, the receipt of required regulatory approvals, and other closing conditions.

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Latest openings and conversions reflect Home Hardware’s growth in Quebec

ST. JACOBS, Ont. — While it’s Canada’s second-largest province for home improvement sales (Source: Hardlines Market Share Report —shameless plug here!), Quebec is under-represented by some of the country’s large national banners.

Home Hardware Stores Ltd. is no exception. While the chain has almost 1,100 stores nationwide, only 122 of them are in Quebec, even though la belle province represents about 25% of the Canadian market (Source: Hardlines Market Share Report —yes, another even more shameless plug!). But Quebec has been a focus for the dealer-owned co-op in recent years, and all the upheavals that have taking place there have provided added opportunities for growth.

“Whenever there’s movement in the industry, not everybody is happy with it. Some will look elsewhere,” says Mario Durocher, Home’s director of operations for Quebec, alluding to the string of changes that have included Ace’s move to RONA, the acquisition of Groupe BMR by La Coop fédérée, and RONA’s imminent sale to Lowe’s Canada.

Indeed, other groups have beefed up their efforts in Quebec: Groupe BMR has announced it will pursue RONA dealers, offering a Quebec-based solution. Castle Building Centres has made big gains with large dealers there in recent years. And just last week, TIMBER MART Group announced it had hired two more Quebec recruitment managers.

Durocher stresses that opportunities abound, and with three regional managers of its own in the province, Home’s growth has been good. In fact, 2014 was a record year, with 15 new dealers signed; last year another six joined. Since 2009, Home has increased its store count in Quebec by 45%. Three more have joined year to date: a dealer conversion located just north of Montreal, plus two more that will be announced soon (we’ll keep you posted! —your enthusiastic Editor).

Growth also includes expansion of existing businesses. Quincaillerie Sainte-Julie Inc. in Sainte-Julie expanded into a new location with a grand opening last week. The owner, Michel Robidoux, and his wife Marie-Josée Hébert (shown above, with Mario Durocher on the left, and Claude Bissonette, retail sales and operations manager for that area), joined Home Hardware two years ago. Another existing dealer, Centre de Rénovation FDS Home Hardware in Arvida, is also moving into a larger space, a former Super C store in Jonquière, to better serve the Saguenay region. Grand opening is slated for June 2016.

Durocher is anticipating a banner year for conversions, because of “too much instability in the market. Are we the right fit for everybody? No—but we feel we have a lot to offer to dealers changing banners in 2016. There’s still tons and tons of potential.”

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La Coop fédérée garners retail excellence award from Quebec association
MONTREAL ― La Coop fédérée has received an Award of Recognition from the Conseil québécois du commerce de détail (CQCD). This award highlights the contribution and part played by La Coop fédérée through its Sonic, BMR, and Unimat brands in developing the Quebec retail trade.

“In 93 years of history, La Coop fédérée has had the chance to receive several awards for its contribution to the agricultural community—our core business—but its contribution to retail trade remains largely unknown. However, retail represents one third of our $6 billion in revenues,” said François Dupont, senior vice-president of retail and innovation, on receiving the award on behalf of La Coop.

Throughout the past few years, La Coop fédérée has positioned itself as a major player in retail trade in Quebec. The acquisition of Groupe BMR in 2015 has allowed the group to consolidate its presence in the hardware and renovation market. Today, BMR lays claim to being the largest hardware retailer held exclusively by Quebec interests (That will certainly be true within a few months. —Editor).

“Our goal is clear: we want to be recognized as a leader in the retail sales industry in Eastern Canada. This Award of Recognition is testimony to the increasing contribution of La Coop fédérée in retail trade and its economic impact in Quebec,” Dupont added.

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Jeff McCully and Paul Montgomerie have joined DAP Canada as national account managers. (Jmccully@dap.com; pmontgomerie@dap.com)

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CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager – Ontario

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in Ontario. This position requires an individual who is familiar with the Ontario Lumber and Building Supply industry, willing to travel extensively and accustomed to working remote from head office.

Reporting to the Director of Business Development, you welcome the opportunity to work with a dynamic group of independent LBM dealers while planning and executing our future growth initiatives. Providing continual communication to our Ontario Members while understanding their needs is fundamental to your success. Sound computer and presentation skills combined with good administrative qualities are imperative.

Castle Building Centres Group offers a comprehensive compensation package including full benefits.

All submissions will be treated with complete confidentiality. Please forward by email your resume in confidence to:

E-mail: jobs@castle.ca
Castle Building Centres Group Ltd.
100 Milverton Drive, Suite 400
Mississauga, Ontario
L5R 4H1

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Sales Manager Sherwin Williams Diversified Brands Canada
Quebec & Atlantic

This position will be responsible for growing top line sales, profit and market share for the customer(s) with an assigned territory.  This position will also be responsible for the planning, development and implementation of business plans to expand and develop new business opportunities; achieving results by capitalizing on product, pricing and promotion opportunities;  position will also work with other cross functional teams and will utilize CRM for sales planning.  Additional responsibilities include proforma analysis, P&L analysis, budget management, key negotiations and line reviews.  This position will also supervise employee(s) and will be responsible for hiring, on boarding/training, employee development/coaching & performance appraisal(s).

Basic Qualifications:
High School Diploma or equivalent required
Must be able to operate a computer and communicate via the telephone
Preferred Qualifications:
Bachelor’s degree in business related field is preferred

Required Skills:
Bilingual (French/English), prior experience in a management or supervisory role, experience with employee development/coaching & sales budget attainment.
Preferred Skills:  Prior experience selling architectural coatings, prior experience selling to independent dealers, coop, contractors or architects.  Prior sales success utilizing Customer Relationship Management software.

You can search the job by clicking on current openings and click on Careers@Sherwin-Williams. There you can find the posting by searching the job number 160003VE in the advanced search.