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Furniture retailer ScS has revealed it has agreed to be acquired by Italian brand Poltronesofà in a £99.4m deal.
SCS’s board said the deal, which represents a premium of 66 per cent. to the Closing Price per ScS Share of 169 pence on 23 October 2023, has been recommended to shareholders and is expected to be completed in early 2024.
The Poltronesofà board believes there is a “compelling strategic and financial rationale” for the deal as its “next step” in its pan-European expansion.
Poltronesofà added it has decided to continue its geographic growth and plans to enter the United Kingdom sofa market and having “followed the UK market and its key players for a significant amount of time, Poltronesofà believes that ScS and Poltronesofà share many common values and principles”.
Established in Reggio Emilia in 1995, Poltronesofà has become the leading sofa retailer in Italy and one of the leading sofa retailers in Europe. Established in Reggio Emilia in 1995, Poltronesofà has become the leading sofa retailer in Italy and one of the leading sofa retailers in Europe and operates 167 stores in Italy, 106 stores in France and 27 further stores across Europe.
Renzo Ricci, CEO of Poltronesofà, said: “As the next step of Poltronesofà’s pan-European expansion, the Acquisition represents the best opportunity for Poltronesofà to enter the United Kingdom market of upholstery products.
“Poltronesofà believes it is strategically very well placed to support ScS in the next stage of its development, and by building on the combined industry knowledge and experience and providing the necessary capital to accelerate ScS’s ambitions, the Acquisition will help ScS realise its full growth potential.”
Alan Smith, non-executive chair of ScS, added: “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.”
