They’re two of the best-known names for Canadian home furnishings and they now going to be owned by the same company.
Leon’s Furniture, founded in 1909 is buying out Edmonton- based The Brick Ltd. for $700-million.
Leons will pay $5.40 per per share. The Brick closed Friday at $3.50 at the TSX.
Bill Comrie, founder of The Brick and other big company shareholders have voted in favour the deal.
Terry Leon, CEO of Leon’s, will head the combined company while Vi Konkle, president and CEO of The Brick, will remain president of the Edmonton subsidiary. The two retailers will maintain separate head offices in the cities.
The separate brand names will continue.
The agreement comes as U.S. retailer Target Corp. prepares to open stores across Canada and as Wal-Mart Stores Inc. expands its footprint in the country.