The Warehouse Group has bought the Noel Leeming chain of 92
electronics and appliances stores for $65 million.
"The Warehouse Group believes this acquisition will support
its transformation into New Zealand's pre-eminent non-food
Retail business and support its ongoing strategy to improve
the "Red Sheds" performance," the Warehouse Group said in an
announcement to the stock exchange.
"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."
The announcement said Noel Leeming would as a separate
trading division with its own "retail brand positioning and
"The Warehouse Group will retain the current Noel Leeming
Group management team, who have proven their ability to
satisfy customers and deliver growth in a challenging retail
environment," said Warehouse Group chief executive Mark
"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 acquisition would be funded through existing debt
facilities and was expected to be earnings accretive from the
outset, Powell said.
The Warehouse Group was expecting Noel Leeming Group to
contribute $4 million to $6 million of earnings to its first
half results from the acquisition in December 2012 to January
27 next year.