Leon's Furniture has completed its takeover of archrival The Brick in a deal with an estimated value of about C$700 million. The new combined retail powerhouse will be the largest furniture, mattress and major appliance retailer in Canada with annual sales of C$2.4 billion.
Leon's acquired all outstanding common shares of The Brick for C$5.40 each and bought all outstanding common share purchase warrants for C$4.40 each. Those shareholders also had the right to receive convertible debentures instead of cash.
Leon's also announced that with the completion of the acquisition, The Brick's common shares and common share purchase warrants will cease to be listed on the Toronto Stock Exchange effective April 1.
In earlier statements, Terry Leon, president and CEO of the publicly held and family-managed retailer, said Leon's and The Brick will continue to operate independently of each other and continue to compete in the marketplace. He will be CEO of the combined corporate entity as well as president of Leon's.
Vi Konkle, who was named president and CEO of The Brick in January 2012, will continue to serve as president of the Edmonton-based chain. She will now report to Terry Leon.
Bill Gregson, the turnaround specialist who was president and CEO before Konkle and is now executive chairman of The Brick, is expected to join Leon's board of directors in the near future.
Founded in 1909, Leon's operates 79 corporate and franchise stores in Canada.
The Brick, which opened its first store in Edmonton in 1971, has 231 corporate and franchise stores in the country under four banners: The Brick, United Furniture Warehouse, The Brick Mattress Store and Urban Brick.
