TORONTO, Nov. 15,
2024 /CNW/ - Canadian Tire Corporation, Limited (TSX:
CTC) (TSX: CTC.A) (CTC or the Company) today announced an agreement
to sell a 90-acre industrial property in the Greater Toronto Area for total proceeds of
$258 million. This follows a North
American-wide competitive bid process initiated in the first
quarter of 2024.
The property, located at the corner of Bramalea and Steeles in
Brampton, Ontario, includes
1.5-million square feet of industrial real estate which is no
longer needed for CTC's distribution centre requirements as a
result of strategic supply chain investments and consolidation in
recent years.
"Fifty years ago, this site was a first-of-its-kind in
Canada and a fundamental building
block for our supply chain," said Greg
Hicks, President and CEO, Canadian Tire Corporation. "In
that same spirit, we have been investing and evolving, introducing
modern and sophisticated facilities in the region, which are key to
our supply chain of the future."
"Our need for the site has decreased significantly in recent
years. This transaction offers a clear example of our ability to
surface shareholder value from surplus real estate assets."
CTC's real estate portfolio remains a core asset and a source of
potential value through the sale, entitlement or redevelopment of
redundant properties. This transaction follows the sales of retail
properties in Chilliwack, B.C. and
the Greater Toronto Area, as
disclosed with the Company's Q2 2024 and Q3 2024 results.
The transaction will result in a pre-tax gain of approximately
$240 million on closing and will be
treated as a normalizing item. The transaction is expected to close
in the fourth quarter of 2024, subject to customary closing
conditions.
Proceeds will be used to reduce borrowings associated with the
Company's October 2023 repurchase and
consolidation of the Canadian Tire Financial Services business.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information within
the meaning of applicable securities laws, which reflects
Management's current expectations and plans regarding the sale of a
90-acre industrial property, located in the Greater Toronto Area (the Transaction) and
future events. All statements other than statements of historical
facts contained in this press release may constitute
forward-looking information, including, but not limited to,
statements concerning: the closing of the Transaction, including
the closing date; the applicable tax and accounting treatment of
the Transaction; and the use of proceeds from the
Transaction. CTC has provided these forward-looking statements
for the purpose of presenting information about management's
current expectations and plans relating to the Transaction and
readers are cautioned that these statements may not be appropriate
for other purposes. Forward-looking statements are based on the
reasonable assumptions, estimates, analyses, beliefs and opinions
of management, made in light of its experience and perception of
trends, current conditions and expected developments, as well as
other factors that management believes to be relevant and
reasonable at the date that such statements are made.
Forward-looking information is necessarily subject to a number of
business, economic, competitive and other risk factors that could
cause actual results to differ materially from management's
expectations and plans as set forth in such forward-looking
information. For information on the material risk factors and
uncertainties and the material factors and assumptions applied in
preparing the forward-looking information that could cause CTC's
actual results to differ materially from predictions, forecasts,
projections, expectations or conclusions, refer to section 13.0
(Forward-Looking Information and Other Investor Communications) of
the Third Quarter 2024 Management's Discussion and Analysis as well
as CTC's other public filings, available
at https://www.sedarplus.com and
at https://investors.canadiantire.ca. CTC does not undertake
to update any forward-looking information, whether written or oral,
that may be made from time to time by it or on its behalf, to
reflect new information, future events or otherwise, except as is
required by applicable securities laws.
ABOUT CANADIAN TIRE CORPORATION
Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) (or
"CTC"), is a group of companies that includes a Retail segment, a
Financial Services division and CT REIT. Our retail business is led
by Canadian Tire, which was founded in 1922 and provides Canadians
with products for life in Canada
across its Living, Playing, Fixing, Automotive and Seasonal &
Gardening divisions. Party City, PartSource and Gas+ are key parts
of the Canadian Tire network. The Retail segment also includes
Mark's, a leading source for casual and industrial wear; Pro Hockey
Life, a hockey specialty store catering to elite players; and
SportChek, Hockey Experts, Sports Experts and Atmosphere, which
offer the best active wear brands. The Company's close to 1,700
retail and gasoline outlets are supported and strengthened by CTC's
Financial Services division and the tens of thousands of people
employed across Canada and around
the world by CTC and its local dealers, franchisees and petroleum
retailers. In addition, CTC owns and operates Helly Hansen, a
leading technical outdoor brand based in Oslo, Norway. For more information, visit
Corp.CanadianTire.ca
FOR MORE INFORMATION
Media: Stephanie Nadalin,
(647) 271-7343, stephanie.nadalin@cantire.com
Investors: Karen Keyes, (647)
518-4461, karen.keyes@cantire.com
SOURCE Canadian Tire Corporation, Limited