TRADING SYMBOL: Toronto Stock Exchange - CWA.UN
VANCOUVER, Jan. 5 /CNW/ - Coast Wholesale Appliances Income Fund (the
Fund) today announced that its indirect subsidiary, Coast Wholesale Appliances
LP (Coast), has completed the acquisition of the assets and business of
independent Ontario appliance dealer Morley's Appliance Centre. The
transaction was financed by Coast's existing acquisition term facility.
Initially announced October 31, 2008, the acquisition is in keeping with
Coast's strategic objective of expanding its business into Central Canada.
Morley's operates one location situated in the Greater Toronto Area in the
Township of Vaughan. The purchase allows Coast to generate incremental sales
revenue growth and capitalize on its buying power and the strong operating
synergies that exist between the two businesses.
"We believe this acquisition will give us the foothold we need to build a
strong presence in Ontario," said Blain Lawson, Chief Executive Officer of
Coast. "We are looking forward to building on Morley's excellent reputation
and customer base."
Coast has operated in Western Canada since 1978 and is a leading
independent supplier of major household appliances to developers and builders
of multi-family and single-family housing, and to retail customers. With the
Morley's acquisition, Coast has 15 stores and four warehouse distribution
centres located across the four western provinces, plus one store in Southern
Coast Wholesale Appliances Income Fund was created to acquire and hold a
65% indirect interest in Coast Wholesale Appliances LP and its results are
entirely dependent upon Coast's operating results. The remaining 35% interest
has been retained by the previous ownership. Since its inception, the Fund has
paid 41 consecutive monthly distributions to unitholders.
This news release may contain forward-looking statements relating to
expected future events and financial and operating results of Coast that
involve risks and uncertainties. The actual results may differ materially from
management expectations as projected in such forward-looking statements for a
variety of reasons. These include market and general economic conditions, the
result of due diligence inquiries and negotiation of binding acquisition
documents, and the risks and uncertainties detailed from time to time in
Coast's continuous disclosure materials filed with Canadian securities
regulatory authorities, including the third quarter 2008 and year-end 2007
Management's Discussion and Analyses filed at SEDAR (www.sedar.com). These
forward-looking statements are based on assumptions that management considered
reasonable at the time they were prepared. Due to the potential impact of
these factors, Coast disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by applicable law.
For further information:
For further information: Jack Peck, Chief Financial Officer, Telephone:
(604) 301-3400, Email: email@example.com, Website: