The Warehouse Group has paid $65 million to Gresham Private Equity for consumer electronics and home appliance retailer Noel Leeming.

With 92 stores throughout New Zealand and an online retail presence, Noel Leeming will operate as a separate division to The Warehouse Group with its own retail brand positioning and personality. The Warehouse Group will also retain the current Noel Leeming Group management team.

“We are impressed with the performance of Noel Leeming Group over the past three years with strong management leading a talented team in the specialist consumer electronics and home appliance sector,” Mark Powell, The Warehouse Group CEO, said.

“We believe in the future growth of this retail sector, and are pleased that the current management team has agreed to stay with the business.”

The company expects Noel Leeming Group to contribute $4 million to $6million of EBIT to its first-half results from the acquisition date of 10 December 2012 through to 27 January 2013.

According to Graham Evans, The Warehouse Group chairman, the support is part of an ongoing strategy to improve the “Red Sheds” performance.

“Noel Leeming Group is a strategic acquisition which fits very well with The Warehouse Group’s existing portfolio of businesses, and supports our transformation into New Zealand’s preeminent Non-Food Retail business,” he said.