CANADIAN TIRE TO ACQUIRE MARK'S WORK WEARHOUSE
By Adnews Staff
Toronto-based Canadian Tire Corporation has made a cash offer to acquire Calgary-based Mark's Work Wearhouse. The $116 million offer is subject to regulatory approval and is expected to close by February. Mark's is a specialty retailer operating 325 corporate and franchisee stores across Canada. Following the acquisition, the company will operate as a standalone retail division of Canadian Tire with Garth Mitchell continuing as president and CEO. Under a support agreement signed between Canadian Tire and Mark's Work Wearhouse, Canadian Tire will receive a $6 million termination fee if the transaction does not proceed. "Both Mark's Work Wearhouse and Canadian Tire are unique in the marketplace with a customer focus on goods for everyday use," said Wayne Sales, president and chief executive of Canadian Tire. "This is a strong strategic and financial fit. The combination of Canadian Tire's hard good expertise and Mark's work and work-related casual apparel and footwear expertise, targeting common customer segments, will provide tremendous opportunities to leverage the strengths of both organizations." Mark's recently announced a plan to consolidate its 169 Mark's stores, its 144 Work World stores and its eight Dockers test stores into one chain under the Mark's Work Wearhouse name.