Leon’s buys The Brick in $700-million deal

[Locutus]

Leon’s Furniture Ltd. has bought its competitor The Brick Ltd. in a deal worth roughly $700-million, it was announced Sunday.


Leon’s will pay $5.40 per share, representing a premium of about 62 per cent on Friday’s closing price of $3.50 for The Brick shares on the Toronto Stock Exchange.


The two chains will continue to be marketed under separate banners, with administrative offices in Toronto and Edmonton, where The Brick was founded in 1971.


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Leon

 

[Ron in Regina]

That's a huge acquisition. I still know several people in the Brick & United Furniture Warehouse stores
here in Regina....& wonder how they'll be affected.

 

[IdRatherBeSkiing]

That's a huge acquisition. I still know several people in the Brick & United Furniture Warehouse stores
here in Regina....& wonder how they'll be affected.

Some of them will be laid off. My guess is everything behind the retail front will be combined into one operation with about 50% layoff. It won't happen immediatly but over time.