Home-improvement giant Lowe’s Companies on Monday said it’s acquiring leases for 13 former Target stores in Canada and buying a Target distribution center in Ontario for about $124 million, speeding up its expansion north of the border.
The deal came as part of a real-estate auction following Target’s decision to exit Canada.
Lowe’s, based outside Charlotte, opened its first stores in Canada in 2007 and now has 38 from Ontario to British Columbia, with about 6,000 employees. In 2012, Lowe’s made a bid for Canada’s largest home-improvement retailer, Rona, but pulled back after the company rejected the unsolicited offer.
“These additional locations will accelerate our expansion across the country, enhancing our presence in Western Canada and strengthening our base in Ontario,” said Sylvain Prud’homme, president of Lowe’s Canada, in a statement.
Lowe’s said the stores will be located around Canada, including markets where the company has little presence. The purchase of the distribution center will create 2,000 jobs in Canada, the company said.
The proposed acquisitions still need court approval. The court process is expected to be completed by June 30, Lowe’s said.