Toys R Us has received both US and Canadian court approval for its sale to Fairfax Financial Holdings Limited.
The transaction is subject to customary closing conditions, including remaining court and applicable regulatory approvals, and is expected to close this quarter.
“We are very excited to partner with Fairfax,” said Melanie Teed-Murch, president of Toys R Us and Babies R Us Canada.
“We are thrilled that more than 4,000 members of our team will be joining the Fairfax family and this transaction provides stability for all of our stakeholders, including customers, suppliers and landlords. With this strong ownership, we will also now have the resources available to reinvigorate our stores, improve our customers’ experience and grow our market leading position.”
Prem Watsa, chairman and CEO of Fairfax, added: “Toys R Us has 34 year track record of standalone profitability in Canada (over the last three years, revenue has exceeded $1bn annually and, for the last nine years, EBITDA has exceeded $100 million annually).
“With over two decades working in Canada for Toys R Us, Melanie has the experience necessary to lead the dedicated employees of Toys R Us for the benefit of all stakeholders, kids, families and communities across Canada.
“We look forward to building for the long-term and allowing the Toys R Us team in Canada to re-invest in the business instead of the past history of just sending earning to the US.”