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ScS has announced it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com from the administrators of Snug Shack Limited for consideration of £875,000.
Snug is a digital-first sofa and sofa-bed business specialising in modular and reconfigurable sofas. Snug was founded by Robert and Peter Bridgman in 2018 as Europe’s first sofa-in-a-box concept, and has grown to become one of the largest retailers in this segment of the furniture market.
Although predominantly online, Snug also operates from one store in Leeds. It said it expects there to be an opportunity to add Snug concessions to the group’s stores, providing the brand with “significantly improved national visibility and penetration”.
The ScS board added it believes the acquisition of Snug represents further progression in its strategy. Snug’s strong brand and differentiated digital-first offering will complement ScS’s existing proposition, further diversifying its customer base and increasing market share.
Snug has a team of 53 colleagues, all of which will join the ScS group as part of the acquisition.
For the 12 months to 31 December 2022, Snug expects revenues of c£20m. Going forward under ScS’s ownership it aims to further grow the business. Snug will report in line with the group’s financial year, apply the group’s accounting policies and is expected to be earnings accretive in FY24.
Steve Carson, CEO of ScS, said: “Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. In that regard, it presents us with an exciting opportunity to further increase market share.
“We therefore view it as a great strategic and cultural fit which reinforces our commitment to helping our customers create the home they love. We look forward to welcoming our new colleagues into the ScS family.”
