Toronto, Ontario, January 7--Sears Canada Inc. announced that has agreed to acquire Cantrex Group Inc. from a Canadian subsidiary of General Electric Capital Corporation.
Cantrex is Canada's largest buying group representing independent merchants of furniture, appliances, electronics, photography equipment and floor coverings. The acquisition also includes Corbeil Electrique Inc., a Montreal-based retailer of major appliances located primarily in Quebec. Corbeil is a wholly-owned subsidiary of Cantrex. This transaction is subject to certain closing conditions including regulatory approval.
"This is a strategic acquisition that will provide Sears Canada with an
opportunity to further develop its merchandising, buying and logistics
services in the furniture and appliances sectors," said Brent Hollister,
President and Chief Executive Officer, Sears Canada Inc. "It will also provide
independent retailers with the opportunity to continue to develop their
business within the communities they serve."
Additionally, this transaction has the potential to generate revenue
growth across many of the Sears Canada business platforms including the Sears Card. The transaction has no operating impact on any of Sears existing
off-mall channel businesses such as its dealer stores, floor covering centres
and Sears Home stores.
"We understand the pressures that independent retailers bear in today's
marketplace," continued Mr. Hollister. "We currently work with over 200
independent retailers including our Sears Dealer stores and Floor Covering
Centres as well as more than 2,200 catalogue agents. Our experience in these
businesses has helped us to understand the unique and important role that
local owner/managers bring to their customers. Independent retailers bring
significant value to their local market and a connection and commitment to
their community. Acquiring Cantrex provides these merchants with the
advantages of a major retailer."
Sears currently has a network of Sears Dealer stores, Sears Floor
Covering Centres and catalogue agents all of which are locally owned and
operated within rural and suburban markets. All merchandise sold in the dealer
stores and floor covering centres is supported by Sears guarantee of
satisfaction as well as Sears extensive Product Repair Service Division, the
largest installation, delivery and service network in Canada. In addition,
these stores accept Sears and third-party credit cards.
Sears Canada, the retailer with the most extensive multi-channel network
in the country, began serving customers in 1953. The Company has 48,000
associates and, in an independent consumer survey, ranks high in customer
service, trust, respect, and quality products and services. There is a Sears
location within a 10-minute drive of 93% of Canadians.
Cantrex Group Inc. is Canada's largest buying group for independent
merchants in the furniture, appliances, electronics, computers, floorcovering
and photography equipment sectors with more than 1,000 retail outlets across
Canada.
