FUTURE SHOP TO ACQUIRE CHAPTERS
By Adnews Staff
Board members of both Burnaby, BC-based consumer electronics retailer Future Shop and Toronto-based book retailer Chapters are supporting a recommendation for Future Shop to acquire Chapters. The aggregate bid price is $200 million and includes cash and shares. The acquisition would create the country's largest computer, consumer electronic, book and online retailer. "Acquiring Chapters fits into our business model and our strategic plan that calls for reaching $5 billion in sales in five years. It is complementary to our existing growth strategy based on the four main tenets: selling boxes, selling content associated with boxes, selling connections and services. Chapters fits into the boxes and content element of our growth strategy," said Kevin Layden, president and COO of Future Shop. The deal, announced yesterday, may put an end to Trilogy Retail Enterprises' bid to acquire 50.1% of Chapters for $73.3 million. Trilogy is a private company owned by Gerald Schwartz and his wife, Indigo Books CEO Heather Reisman.