Today, Chase (NYSE: JPM) announced the completion of its purchase of the Sears Canada Inc. (TSX: SCC) credit and financial services operations, including both its private-label Sears credit card accounts and its co-branded Sears MasterCard .
The purchase, announced by the two companies in August, includes approximately 10 million accounts and CAD$2.5 billion in outstanding loans. In addition, Chase acquired Canadian facilities located in Burnaby, British Columbia; Ottawa, Scarborough and Toronto, Ontario with approximately 1,000 employees.
Under the ongoing arrangement, Sears Canada and Chase will continue to offer private-label and co-branded credit cards to both new and existing customers. Chase expects the transaction to be accretive to earnings in 2006.
"Today is an exciting day of new opportunities for both Chase and Sears Canada," said Rich Srednicki, CEO, Chase Card Services. "Together, we will serve millions of customers and we are committed to providing products and services that our customers most need and want. We're pleased to complete this purchase and welcome our new Canadian colleagues to Chase."