Vancouver's Coast Wholesale Appliances Income Fund (TSX:CWA.UN) has closed its purchase of Ontario-based Morley's Appliance Centre.
The acquisition gives Coast Wholesale a foothold in the Ontario market as part of its strategy to expand its business into Central Canada. The income trust operates 15 stores and four warehouse distribution centres throughout Western Canada.
For the nine-month period ending September 30, Coast Wholesale reported revenue of $110.7 million, up from $105.7 million in the same period in 2007. Net income fell in the period to $4.6 million from $5.6 million.
The Morley acquisition gives the trust a location in the township of Vaughan, which is within the Greater Toronto area. Founded in 1954, Morley's has a well-established customer base and generates approximately $11 million in annual sales revenue.
Coast plans to retain all of Morley's staff and management as it expands its business.
Coast Wholesale's unit price range during the past week: between $3.20 and $3.78; 52-week high: $9.52; 52-week low: $2.20.