Nick Scali buys Plush
Nick Scali has purchased rival sofa retailer Plush from Greenlit Brands.
The $103 million deal will see the buyer control 108 Australian and New Zealand showrooms – up from 62.
The purchase will be funded by cash and new debt.
Both brands will be expanded
As part of the acquisition, the Plush brand will be kept – the buyer forecasts its outlet numbers will double in the long term to between 90-100.
Nick Scali is also intending to add at least 30 eponymous stores in the coming few years (story continues below).
“Plush is a high quality Australian sofa retailer with a strong track record of profitability and performance over a long period of time,” Nick Scale chief executive officer, Anthony Scali, said.
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,” he added.
Efficiencies are expected in buying, distribution and with support functions.
Greenlit retains brands Fantastic Furniture, Freedom Furniture, OMF (Original Mattress Factory) and Snooze.
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