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Leon's Furniture Ltd. and the Brick Ltd. have entered into a definitive agreement that provides for the acquisition of the Brick by Leon's by way of a plan of arrangement for $5.40 per share. Leon's will also acquire all of the outstanding common share purchase warrants of the Brick for $4.40 per warrant. 

The total consideration payable to Brick shareholders and warrantholders is approximately $700-million.

The share consideration represents a premium of approximately 62 per cent to the 20-day volume-weighted average price of the Brick's common shares on the Toronto Stock Exchange as of Nov. 9, 2012. The warrants, which have an exercise price of $1 and expire on May 27, 2014, had a closing price on the TSX of $2.36 on Nov. 9, 2012. The closing price of the Brick shares on the TSX on Nov. 9, 2012, was $3.50.

Leon's and the Brick will continue to operate as separate banners out of offices in Toronto and Edmonton. Terry Leon will remain as chief executive officer of Leon's and will be CEO of the combined entity. Vi Konkle, president and CEO of the Brick, will continue as president of the Brick. Bill Gregson, currently executive chairman of the board of the Brick, has agreed to stay on in an advisory capacity. It is anticipated that Mr. Gregson will join Leon's board in due course. Mark J. Leon will continue to serve as the chairman of the board of Leon's.

Terry Leon, president and chief executive officer of Leon's, said: "This transaction brings together two great Canadian companies with complementary geographic footprints to strengthen our position in the home furnishings marketplace. We will apply the best practices of both companies to offer even greater value to our customers and create more opportunity for our associates. Our combined team will have access to national buying opportunities in merchandising and marketing and a national distribution network that will enable us to greatly enhance our on-line shopping capabilities. We are very excited to build on the relationships we have established over the years with our respective associates, franchises, customers, shareholders, suppliers and the many communities we serve."