WELLINGTON Dec 10 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
He added that the move would boost its non-food retail
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)