Strategic opportunity
Mr Scali said the two chains had highly complementary product offerings and business models – both Nick Scali and Plush make sofa to order – and the acquisition was expected to deliver synergy benefits within two years.
“ Plush is a high-quality australian sofa retailer with a potent path read of profitableness and operation over a long period of time, ” Mr Scali said .Advertisement “ The learning is a strategic opportunity for Nick Scali and will allow us to leverage the increased scale of the combined group whilst providing a platform to significantly grow the memory network. ”
Nick Scali intends to retain the Plush sword, to target a wide range of customers, outdoors raw stores in Australia and take the chain into New Zealand, where Nick Scali has opened four eponymous stores in two years. The deal is expected to boost earnings per share in the foremost full year of ownership, before synergy benefits are realised. Greenlit Brands, which besides owns Fantastic, Freedom Furniture, Snooze and Original Mattress Factory ( OMF ), has been selling assets to reduce debt for more than two years. Owned by trouble oneself South African-based retailer Steinhoff International, Greenlit sold Harris Scarfe and Best & Less to Allegro Funds in December 2019 ( Best & Less subsequently floated in July 2021 and Harris Scarfe was sold to Spotlight Group after going into administration ) and attempted to float Fantastic in 2020, but pulled the plug in November 2020. In June, it hired Miles Advisory to test buyer interest in Snooze and Original Mattress Factory.
“ For Plush, this consequence crystallises the opportunity for the business to grow to the next stage of its development, with commensurate opportunities for employees, under the possession of a deeply experienced and high quality retail group, Nick Scali, ” said Greenlit Brands chair and CEO Michael Ford. “ For Greenlit Brands, this transaction realises an asset on behalf of our rear company, Steinhoff International, in an orderly fashion and for fairly value, ” he said, adding the group continued to evaluate strategic options and opportunities. The Plush learning is subjugate to closing conditions and is expected to be completed before the end of calendar 2021.
