Vancouver's Coast Wholesale Appliances Income Fund (TSX:CWA.UN) plans to buy the assets and business of Ontario-based Morley's Appliance Centre for an undisclosed sum.
The move is the income trust's first foray into the Ontario market. To date, it has provided major household appliances to developers and builders of multi-family and single-family housing throughout Western Canada with 15 store locations and four warehouse distribution centres.
The Morley acquisition gives the trust a location in the township of Vaughan, which is in the Greater Toronto area. Founded in 1954, Morley's has a well-established customer base in the area and generates approximately $11 million in annual sales revenue.
The deal, which is subject to due diligence and other customary closing conditions, is expected to be immediately accretive to the fund's earnings and distributable cash.
Coast has said it intends to retain all the staff and management at Morley's.
Coast Wholesale's unit price range during the past week: between $3.31 and $3.83; 52-week high: $10.20; 52-week low: $3.23.