LEON’S FURNITURE LTD. $13.40 - Toronto symbol LNF

LEON’S FURNITURE LTD. $13.40 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 70.5 million; Market cap: $944.7 million; Dividend yield: 3.0%) has received approval from shareholders of The Brick (symbol BRK on Toronto) for its $700-million takeover of that company.

The Brick operates 230 stores across Canada, while Leon’s has 76 outlets in every province except B.C. Leon’s and The Brick will continue to operate as separate chains.

Growth by acquisition can be risky, especially with a deal this big. But The Brick looks like a good fit with Leon’s.

The Brick is profitable and has paid down its high debt. In the latest quarter, The Brick earned $0.15 a share, up 36.4% from $0.11 a year earlier.

Leon’s is still a buy.

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