Big Deals: Leon’s Buys The Brick for $700M

Leon’s Furniture Ltd. announced its $700-million acquisition of The Brick Ltd. on Sunday, in a transaction that has been the talk of the retail sector.

According to Chris Hewat of Blake, Cassels & Graydon LLP, who is leading the corporate/securities team for The Brick Ltd.:

This is a very significant transaction for Brick shareholders, who have seen the company’s finances restructured through financing led by Fairfax in 2009, and its operations overhauled under the leadership of Bill Gregson. A 62% premium on recent trading prices ($3.34 20-day volume weighted average), but huge recovery since prices of $1.00 and change prevailing in 2009.

McCarthy Tétrault LLP is representing Leon’s with a team led by David Tennant, and including Gordon Baird, Rob Hansen and Lara Nathans, Oliver Borgers, Don Houston and Jonathan Bitran, Paulina Tam, Stephanie Yarmo, Victoria Seth, Puja Inamdar, Jamie Orzech and Carolyn Ruby, Patrick McCay, Lorraine Allard and Mark Firman, Trevor Lawson, Geoff Hall, and Ian Bies.

Torys LLP is representing Fairfax Financial with a team including David Chaikof, Thomas Yeo, Tom Zverina and Emily Atkinson.

Blake, Cassels & Graydon LLP is counsel to The Brick, with a team including Chris Hewat, Tim Andison and Cat Youdan on corporate/securities, and Chris Van Loan and Ilan Braude on tax.

The deal is expected to close in the first quarter of 2013.

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