FORT WORTH, Texas -- The Leather Factory, Inc. (AMEX:TLF) today announced that it has completed the cash purchase of 1124055, Ltd. and its subsidiary, Heritan Leather & Crafts, headquartered in Barrie, Ontario, for approximately $475,000, subject to certain adjustments, which is substantially less than book value of the acquired companies. As a result of the transaction, The Leather Factory acquired three new retail stores, increasing its total number of locations in Canada to seven. The three stores, located in Vancouver, BC, Barrie, ON, and Scarborough, ON, have been operating as Heritan retail stores but will be renamed Tandy Leather effective immediately.
Wray Thompson, the company's Chairman and CEO, commented, "Heritan was the successor to Tandy Leather Company of Canada when that company decided to exit the Canadian market years ago and has been our primary competitor in Canada. Similar to that in the U.S., the Tandy Leather name is highly recognized in the Canadian leathercraft industry. We believe this acquisition is a significant step forward in accelerating our growth throughout Canada."
The Leather Factory, Inc., (http://www.leatherfactory.com), headquartered in Fort Worth, Texas, is an international marketer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, shoe repair supplies, saddle and tack hardware, and do-it-yourself kits, and is a manufacturer and distributor of fancy hat trims, leather lacing and kits. The Company distributes its products through wholesale distribution centers located throughout the U.S. and Canada and through its subsidiary, Tandy Leather Company, via retail stores and mail/telephone/website orders (http://www.tandyleather.com). Its common stock trades on the American Stock Exchange with the symbol "TLF".
Contact: Wray Thompson, The Leather Factory, Inc. (817) 496-4414
Shannon L. Greene, The Leather Factory, Inc. sgreene@leatherfactory.com
This news release contains forward-looking statements, such as the statements regarding future growth. All forward-looking statements made here or in other news releases issued by The Leather Factory, Inc. (TLF) are based on current expectations as of the date of the release. These forward-looking statements involve risks and uncertainties that could cause the results of TLF to differ materially from management's current expectations. Many of these risks and uncertainties are detailed from time to time in TLF's reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q.
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