ScS has agreed to be bought by Italian furniture retailer Poltronesofà in a £99.4m deal.
The British furniture and floorings retailer said the acquisition is subject to shareholder and regulatory approval among other conditions, and is expected to be completed in the first quarter of 2024.
ScS said management intends to unanimously recommend shareholders vote in favour of the takeover while both retailers said the acquisition follows the decision of Poltronesofa to continue its geographic growth and enter the UK sofa market.
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Poltronesofa said it is strategically well-placed to support ScS in the stage of development, providing capital to accelerate its ambitions and building on combined knowledge.
ScS non-executive chair Alan Smith said: “This cash offer, which the ScS board unanimously recommends, comes at an attractive valuation. It recognises the quality of the ScS Group’s operations, its cash resources, and the progress accomplished under Steve Carson’s leadership via his refreshed strategy.
“Poltronesofà, based in Italy, is a pan-European sofa retailer that has been successfully pursuing international expansion and ScS, with UK operations, is the next juncture of that strategy.
“The ScS board believes Poltronesofà will bring significant benefits to ScS through its broad industry expertise in addition to providing the necessary capital that would accelerate our current strategy, albeit in a private rather than public sphere. The acquisition will enable ScS to continue as part of a broader, pan-European entity in pursuit of its strategy and position it for long-term success in the UK.”
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