Smiths City buys Auckland peer

Smiths CityListed, Christchurch-based Smiths City Group has bought Auckland-based peer Furniture City in a $5.85 million deal.

Smiths City, via its subsidiary company Smiths City (Southern) Limited has entered into a conditional agreement to purchase the business and assets of both Panmure Furniture City 1983 Limited (trading as Furniture City) and its logistics operation Lucky Dragon Limited.

The deal includes one store in Auckland and one in Whangarei, an online store and fulfilment centre and a logistics business (Lucky Dragon).

The deal is contingent on financing and due diligence.

Smiths City currently operates 33 retail stores in the South Island, Wellington and the lower North Island, with the northernmost current in Bay of Plenty.

The deal is scheduled to be settled on April 1.

The purchase is the latest in a series aimed at improving sales, market share and critical mass. It follows the acquisition of LV Martin and Powerstore in the past.

“We have been in need of an Auckland presence for some time,” Campbell told BusinessDesk.

“With the acquisition by Smiths City of Furniture City we become a true national retailer in New Zealand. There’s great synergies between the two companies and it’s a logical move.”

He said all the company’s stores were being consolidated under one brand, meaning the Furniture City brand was likely to be phased out in the future.

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