Leon's buying The Brick in $700M deal
Leon's Furniture is buying out The Brick in a deal worth $700 million, the companies announced Sunday.
Leon's, an Ontario corporation founded in 1909, will pay $5.40 for each share issued and outstanding shares of The Brick, plus $4.40 for each outstanding common share purchase warrant.
Leon's, founded in 1909, and The Brick will continue to operate under separate banners out of offices in Toronto and Edmonton.
Terry Leon will remain as CEO of Leon's and will be CEO of the combined entity, the companies announced.
Vi Konkle, president and CEO of The Brick, will continue as president of The Brick.
"This transaction brings together two great Canadian companies with complementary geographic footprints to strengthen our position in the home furnishings marketplace," Leon said. "We will apply the best practices of both companies to offer even greater value to our customers and create more opportunity for our associates.
"Our combined team will have access to national buying opportunities in merchandising and marketing, and a national distribution network that will enable us to greatly enhance our online shopping capabilities."
Leon's has 76 stores in Newfoundland and Labrador, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, Nova Scotia, New Brunswick and Prince Edward Island.
The Brick opened its first store in Edmonton in 1971. The company has 230 stores operating under The Brick, United Furniture Warehouse, The Brick Mattress Store and Urban Brick names.
"We welcome this opportunity to partner with this iconic corporation," Konkle said in the statement.
"By joining forces, we can strengthen both of our businesses, enhancing everything that has made Leon's and The Brick two of Canada's best-known retailers and preserving The Brick's roots in Edmonton."
The deal is expected to close in early 2013.