Sears Canada to acquire Cantrex
Michael Knell -- Furniture Today, January 6, 2005
TORONTO -- Major furniture merchant Sears Canada is set to acquire home furnishings buying group Cantrex from a Canadian subsidiary of General Electric Capital Corp. for an undisclosed sum.
The transaction, which is subject to regulatory approval, is expected to close in April.
The deal could make Sears Canada this country’s largest retailer of furniture and bedding, a position it lost when The Brick acquired United Furniture Warehouse in early 2004.
Cantrex is Canada’s second-largest buying and marketing group and represents independent merchants in a number of home-related categories, including furniture, appliances, electronics, floor coverings and photography.
Among its better-known furniture banners are Furniture Plus, a full-line retailer which operates throughout English Canada, and Decocentre/Tendances, its Quebec counterpart. It also operates Accent in Quebec as well as Mattress World, a sleep specialist in English Canada.
Included in the deal is Corbeil, Cantrex’s highly successful specialty appliance retailer.
In 2003, Sears Canada has estimated retail furniture and bedding sales of C$620 million, while Cantrex members had sales of about C$317 million.
“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 Sears Canada President and CEO Brent Hollister. “It will also provide independent retailers with the opportunity to continue to develop their business within the communities they serve.”
He noted the acquisition has the potential to generate revenue growth across many existing Sears Canada business platforms, including the Sears credit card. However, he stressed it would have no operating impact on any of Sears existing off-mall 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,” Hollister said. “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,” he said. “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.”
Leading the Sears Canada team during the early stages of the proposed acquisition as project manager is Dan Weare, formerly national business manager/furniture for the department store chain and a well-respected figure in the furniture industry.
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Sears Canada to acquire buying group Cantrex
Jan 23, 2005
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