The Warehouse Group has bought Noel Leeming Group’s chain of retail outlets and online business in a $65 million deal completed today.
The Warehouse says the deal will support the company’s transformation ‘into New Zealand’s pre-eminent non-food retail business’ and allow them to gain a presence in the consumer electronics and home appliances sector, via a specialist retailer.
Noel Leeming Group, which includes Bond & Bond in its brands, has 92 stores in New Zealand as well as an online presence. It will continue to operate as a separate trading division with its own retail brand positioning and personality, and the current Noel Leeming Group management team will be retained.
A Warehouse statement to the stock exchange says the consumer electronics and home appliance sector has experienced ‘substantial growth’ over the past five years ‘and as people continue to purchase technology and entertainment products in an increasingly connected world, the sector will continue to grow’.
Mark Powell, Warehouse Group chief executive says: “We are impressed with the performance of Noel Leeming Group over the past three years with strong management leading a talented team in the specialist consumer electronics and home appliance sector. We believe in the future growth of this retail sector and are pleased that the current management team have agreed to stay with the business.”
The Warehouse says it expects Noel Leeming Group to contribute $4 million to $6 million of EBIT to its H1 results, from the December 2012 acquisition to January 27, 2013.
In September, Dick Smith Electronics also changed hands, with Australian private equity firm Anchorage Capital Partners buying the struggling electronics chain for AU$20 million. DSE had 325 stores across ANZ.
The Noel Leeming deal will be funded through existing debt facilities.