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Nick Scali confirms it’s looking to buy Plush Sofas

The furniture space saw strong growth during the Covid-19 pandemic.

Following a successful first half, furniture business Nick Scali has offered Greenlit Brands an undisclosed sum to buy up its Plush Sofas business.

The two businesses are in non-exclusive discussions, and should any transaction take place, Nick Scali said it will likely be able to fund it with cash on hand and debt.

“As previously communicated to the market, the Company actively considers acquisitive growth opportunities from time-to-time having regard to the strategic rationale, available synergies, financial impact and the long-term value created for Nick Scali shareholders,” Nick Scali said in a letter to shareholders.

According to a report in The Australian, the buy-up could be part of a larger divestment by Greenlit which is reportedly also looking to sell off Freedom Furniture, Snooze and Original Mattress Factory.

A Greenlit Brands spokesperson told Inside Retail the group is considering a range of strategic options across its portfolio – including the sale of Plush.

“Greenlit Brands is carefully and methodically analysing all the options and is doing so from a position of strength, as demonstrated by the solid performance across its retail brands in FY20 and continuing through FY21,” the spokesperson said.

“Greenlit Brands will only consider strategic options that would crystallise an opportunity for its brands to grow to the next stage of their development.

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