The North American home-improvement chain Lowe’s is set to buy Canadian store Rona in an effort to solidify and grow their company in the Canadian market.

Photo Credit: Lowe's on Twitter.

On Wednesday morning, they announced the transaction, valued at $3.2 billion, which was unanimously approved by both companies’ boards of directors.

"We are very excited about this transaction as it leverages the strengths of two great companies, positioning us for continued success in Canada's over C$45 billion and growing home improvement industry. The strategic rationale of this transaction, for both companies, is very compelling," said Lowe's Chairman, President and CEO Robert A. Niblock, in a statement.

Lowe's will locate its Canadian head office in Boucherville, Quebec, with Canadian operations to be headed by Sylvain Prud'homme, President of Lowe's Canada.

According to a report released by the company, Lowe's is expected to acquire all of the issued and outstanding common shares of RONA at $24 per share, and all of the issued and outstanding preferred shares of RONA for $20 a share. 

Together, Lowe's Canada and RONA expect to create Canadian revenues in the range of $5.6 billion.

"We believe the time is right to take the next step in the evolution of the RONA family,” said Rona Chairman, Robert Chevrier in a statement. “The team at Lowe's has presented us with an excellent plan that enables our company to maintain its brand power while at the same time leveraging Lowe's global presence to build upon and expand our reach.”

Lowe's has said they’ve identified over $1 billion of opportunities to further increase revenue and operating profitability in Canada which they plan to accomplish by expanding customer reach and providing new products and services to many Canadian costumers. Lowe's said they believe there is potential to double operating profitability in Canada over five years.