TORONTO, May 6, 2015 /CNW/ - Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) has concluded an agreement to acquire 12 strategic real estate leases, formerly held by Target Canada, for $17.7M. The transaction is subject to the approval of the court in connection with Target Canada's CCAA proceedings.
"We're always on the lookout for great opportunities. We've been tracking certain Target properties for some time and when the opportunity came up, we moved quickly and secured virtually all of them. We chose 12 properties that fit strategically and financially into our store network," said Michael Medline, President and CEO, Canadian Tire Corporation.
This acquisition provides Canadian Tire with a unique opportunity to accelerate sales and market share growth. It also allows Canadian Tire to improve profitability by providing a cost-effective means to improve its retail store network through right-sizing and replacing some of its existing stores to better locations. The 12 new locations will add approximately 400,000 square feet of retail space to Canadian Tire Retail's store network.
"We view this real estate acquisition as a high–return investment and a positive transaction for our shareholders, our customers and our Dealers. Our customers are going to benefit from more convenient locations and larger stores that will allow us to showcase more products and deeper assortments of our best brands," concluded Medline.
The newly acquired store locations span the country:
| Store Location |
City/Province |
| Bayers Lake Power Centre |
Halifax, NS |
| Northwest Centre |
Moncton, NB |
| Place Alexis Nihon |
Montreal, QC |
| Place Versailles |
Montreal, QC |
| Les Carrefours Rimouski |
Rimouski, QC |
| Aurora Centre |
Aurora, ON |
| Sudbury Super Mall |
Sudbury, ON |
| Grant Park Shopping Centre |
Winnipeg, MB |
| Driftwood Mall |
Courtenay, BC |
| Tamarack Shopping Centre |
Cranbrook, BC |
| Village Green Mall |
Vernon, BC |
| Hillside Centre |
Victoria, BC |
FORWARD-LOOKING STATEMENTS
This document contains forward-looking information that reflects management's current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is provided.
By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions, estimates, analyses, beliefs and opinions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information.
For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, refer to section 2.10 (Risk Factors) of our Annual Information Form for fiscal 2014 and to sections 6.4.1.3 (Retail segment business risks), 6.4.2.3 (CT REIT segment business risks), 6.4.3.3 (Financial Services segment business risks) and 10.0 (Enterprise Risk Management) and all subsections thereunder of our 2014 Management's Discussion and Analysis, as well as the Company's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.
Statements that include forward-looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on the Company's business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.
The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.
SOURCE CANADIAN TIRE CORPORATION, LIMITED
Media: Sandra Buckler, 416-480-3559, [email protected]; Investors: Lisa Greatrix, 416-480-8725, [email protected]
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