Mr. Michael Medline of Canadian Tire reports

CANADIAN TIRE AND SCOTIABANK OFFICIALLY 'DROP THE PUCK' ON NEW PARTNERSHIP

Canadian Tire Corp. Ltd. and Bank of Nova Scotia have received all required regulatory approvals to officially launch a new business and co-marketing partnership originally announced on May 8, 2014.

The companies have now officially closed the strategic partnership transaction that includes Scotiabank acquiring a 20-per-cent equity interest in Canadian Tire's financial services business for $500-million in cash -- and a comprehensive new co-marketing agreement that will attract new customers and promises to drive significant growth in both companies.

In the months since the partnership was announced, initial marketing campaigns have benefited both companies' customers. Scotiabank's Start Right program for new Canadians and a partnership with the Scene program have resulted in new business growth for both companies -- and the companies have now planned a full year of co-marketing for 2015.

"Through the power of joint marketing, our partnership with Scotiabank allows Canadian Tire, Sport Chek and Mark's to better serve customers, earn new business and strengthen community initiatives," said Michael Medline, president and in-coming chief executive officer of Canadian Tire. "We've already seen success from our early marketing strategies and look forward to unveiling exciting new initiatives in the coming months that will provide opportunities for us to grow our customer base and provide unique and compelling ways for customers to engage with our great brands."

"This partnership lets us deliver more value to existing and new customers through innovative marketing initiatives that include special offers," said Brian Porter, president and chief executive officer, Scotiabank. "For countless years and seasons, Canadian Tire and Scotiabank have given Canadians the tools and advice they need to navigate life in Canada. Now, in true Canadian spirit we are partnering to strengthen communities and better serve our customers."

As part of the new partnership structure, Scotiabank is providing a committed financing facility of up to $2.25-billion to Canadian Tire's financial services business for backstop financing of its credit card receivables. Furthermore, Canadian Tire has an option to sell up to an additional 29-per-cent equity interest in its financial services business to Scotiabank within the next 10 years at the then fair market value that can be settled, at Scotiabank's discretion, by the issuance of common shares or cash, subject to customary regulatory approvals.

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