Leon’s is offering to purchase Edmonton-based company The Brick Ltd., in a deal that would be worth $700 million. The companies made the announcement, Sunday afternoon.
The CEOs from both companies say Leon’s and The Brick will continue to operate as separate brands out of offices in Toronto and Edmonton.
Terry Leon will remain as CEO of Leon’s and will be CEO of the combined entity. Vi Konkle, President and CEO of The Brick, will continue as President of The Brick.
Leon’s says it will pay The Brick $5.40 per share. Leon’s would also acquire all of the outstanding common share purchase warrants of The Brick for $4.40 per warrant.
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The transaction is expected to close in the first quarter of 2013, subject to certain customary conditions, including court approval, relevant regulatory approvals and the absence of any material adverse change with respect to The Brick.
The Brick’s first store was opened in Edmonton in 1971 by founder Bill Comrie. It has expanded over the last 40 years to 230 stores operating under The Brick, United Furniture Warehouse, The Brick Mattress Store and Urban Brick banners.
Toronto- based Leon’s was founded in 1909 and now has 76 stores across the country.
“This transaction brings together two great Canadian companies with complementary geographic footprints to strengthen our position in the home furnishings marketplace,” Leon said in a press release Sunday, adding, “During these economic times where we have seen multiple American corporations make inroads in our country through acquisitions, it is a pleasure to see two successful Canadian retailers reach such an agreement that will better serve Canadian consumers.”
“We welcome this opportunity to partner with this iconic corporation. 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,” Konkle said in the release.
The CEOs and Board Chairs from both companies will host a joint press conference in Toronto on Monday morning at 10:00 ET.
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