Furniture retailer Nick Scali has entered an agreement to buy specialist sofa retailer, Plush Sofas, for a total of $103 million.
Founded in 1999, Plush Sofas has 46 showrooms across Australia, which will bring Nick Scali’s total footprint to 108 stores in Australia and New Zealand with the potential to expand both networks by 90-100 and 85 stores respectively.
Nick Scali CEO, Anthony Scali, can see a bright future and opportunities for further growth for the combined group.
“Plush is a high-quality Australian sofa retailer with a strong record of profitability and performance over a long period of time,” he says.
Nick Scali and Plush have highly complementary products and business models, which make them the perfect fit. The acquisition will provide the combined group a broader customer demographic as well as an enhanced market position, providing diversity in store format, location and geographic exposure.
“The acquisition 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 store network.”
The acquisition will be funded through a combination of cash on hand and new bank facilities, with the acquisition to be completed in the next quarter.