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- Nick Scali (NCK) pens a binding agreement to acquire Plush Think-Sofas for $103 million
- The acquisition will be funded through a combination of cash on hand and new debt facilities, subject to closing conditions
- The company says the deal will allow it to leverage the increased scale of the combined group while providing a platform to significantly grow its store network
- The acquisition is expected to be complete in the fourth quarter of 2021
- Nick Scali shares have soared 10.2 per cent, trading at $12.10 at 1:10 pm AEDT
Nick Scali (NCK) has penned a binding agreement to acquire Plush Think-Sofas for $103 million.
Plush is an Australian made-to-order sofa retailer, with 46 showrooms to its name across six Australian states and territories, servicing over 250,000 customers since 1999.
The acquisition will be funded through a combination of cash on hand and new debt facilities, subject to closing conditions.
“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,” Nick Scali CEO, Anthony Scali said.
The company says the acquisition will strengthen its position in the Australian furniture market. The acquisition will increase Nick Scali’s footprint to a combined 108 stores across Australia and New Zealand, which it says will allow allowing it to target a broader customer demographic.
NCK said following the deal, it believes there is potential for Plush to branch out into up to 100 stores.
Nick Scali estimated the deal will facilitate material synergies to the combined business after a two-year integration period and will be EPS accretive in the first full year of ownership.
The acquisition is expected to be completed in the fourth quarter of 2021.
Nick Scali shares have soared 10.2 per cent, trading at $12.10 at 1:10 pm AEDT.
