10 Dec 2012

Warehouse to buy Noel Leeming

11:31 am on 10 December 2012

The Warehouse Group is to buy the electronics and home appliance retailer Noel Leeming.

The company announced on Monday that it has entered into an agreement to buy the shares of Noel Leeming Group for $65 million.

Noel Leeming has 92 stores throughout New Zealand and also sells online.

The Warehouse says the acquisition will support its ongoing transformation and strategy to improve the performance of its Red Sheds.

The company says the consumer electronics and home appliance sector has experienced substantial growth over the past five years, which it believes will endure as people continue to purchase technology and entertainment products.

Noel Leeming Group will operate as a separate trading division.

AAP reports Noel Leeming narrowed its annual loss to $615,000 in the year ended March 31, from a loss of $3 million a year earlier, according to financial statements lodged with the Companies Office.

Revenue rose 7.6% to $607.8 million and operating profit jumped 45% to $10.6 million. .

Warehouse shares fell 1 per cent to $3.09 in trading on Friday and have increased 3% this year.