The Warehouse is paying $65 million to acquire the Noel Leeming Group and its 92 stores in a bid to boost its consumer electronics offerings and, no doubt, its flagging share price and profits.
Graham Evans, Warehouse Group chairman, said: “Noel Leeming Group is a strategic acquisition which fits very well with The Warehouse Group’s existing portfolio of businesses, and supports our transformation into New Zealand’s pre-eminent non-food retail business.”
Noel Leeming will operate as a separate trading division with its own retail brand and Mark Powell, Warehouse Group chief executive, said the current Noel Leeming management team would stay on.
In a statement, The Warehouse said it expected Noel Leeming to contribute $4-6 billion of earnings to its first-half results.
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