Sears Canada Inc. announced that it 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, and a wholly owned subsidiary of Cantrex. The 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 CEO, 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 retailer said the transaction has no operating impact on any of Sears existing off-mall channel businesses such as its dealer stores, floor covering centers, 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 Centers as well as more than 2,200 catalog 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." (Canada News Wire)
Back to Breaking News