Wednesday, 25 April 2018


ASSET: WHS: The Warehouse agreement to acquire Noel Leeming Group

10 Dec 2012 08:30NZX
Auckland, 10 December 2012


The Warehouse Group announces agreement to acquire Noel Leeming Group

The Warehouse Group announces that it has signed an agreement to acquire Noel
Leeming Group, the specialist Consumer Electronics and Home Appliance

Under the terms of the agreement The Warehouse Group will acquire the shares
of Noel Leeming Group Limited for $65M, with immediate completion to occur

The Noel Leeming Group has 92 stores throughout New Zealand and an online
retail presence, offering a broad range of branded Consumer Electronics, Home
Appliance and Entertainment products.

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 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.

Noel Leeming Group will operate as a separate trading division with its own
retail brand positioning and personality.  The additional retail brands
complement The Warehouse Group''s current retail brands "The Warehouse" and
"Warehouse Stationery".

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.  Mark Powell, the Warehouse Group CEO
said "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"

This acquisition will be funded through existing debt facilities and is
expected to be EPS accretive from the outset.  The Warehouse Group is
expecting Noel Leeming Group to contribute $4M - $6M of EBIT to its H1
results (from the acquisition in December 2012 through to January 27th 2013).

Graham Evans, The 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."

Cameron Partners acted as external adviser to the Board of The Warehouse
Group in respect of this acquisition.


Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 91 Warehouse stores and 59 Warehouse
Stationery stores in New Zealand.  The company has a turnover of $1.7 billion
and employs over 9,000 people.

Contact details

Investors and Analysts
Stephen Small
Chief Financial Officer
Telephone: +64 21 714 159
Mark Powell, Group CEO to be contacted via
Gayle Theunissen  on +64 9 488 3231
End CA:00230883 For:WHS    Type:ASSET      Time:2012-12-10 08:30:07
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