NZ's Warehouse to buy consumer electronic group for NZ$65 mln
WELLINGTON Dec 10 (Reuters) - New Zealand's biggest listed retailer The Warehouse Group Ltd said on Monday it would acquire Noel Leeming Group, a consumer electronics and home appliance retailer for NZ$65 million ($53 million) to expand its business.
The Noel Leeming Group has 92 stores throughout New Zealand and an online retail presence, offering a broad range of branded consumer electronics, home appliance and entertainment products.
"Noel Leeming Group is a strategic acquisition which fits very well with The Warehouse Group's existing portfolio of businesses," The Warehouse Group Chairman Graham Evans said in astatement.
He added that the move would boost its non-food retail business.
The company said the acquisition will be funded through existing debt facilities and is expected to be earnings accretive from the outset.
The Warehouse Group said it expected Noel Leeming Group to contribute NZ$4 million to NZ$6 million of earnings before interest and taxes (EBIT) to its first half results.
The Warehouse has 91 discount stores, known as "Red Sheds", which sell everything from consumer electronics, appliances, clothing, garden supplies, and grocery items. It also has 59 shops selling stationery, office supplies and computers. (Reporting by Mantik Kusjanto)