Nick Scali Confirms $110 Million Acquisition of Plush

Nick Scali has acquired Plush from Greenlit Brands for $110 million, with $7 million to remain within Plush upon completion. The sale is expected to be completed by November 2021.

This conversation began in July this year when the two companies were in talks of the acquisition.

Greenlit Brands houses furniture retailers including Fantastic, Freedom, Snooze and Original Mattress Factory (OMF). In August 2021, the Group rebranded and secured new financing via local banks. This rebrand aims to make the retailers appear ‘contemporary and vibrant’, the business explained.

Michael Ford, Group CEO and Executive Chairman of Greenlit Brands explained his excitement for the transaction, citing future growth possibilities under the new owners.

“For Plush, this outcome crystallises the opportunity for the business to grow to the next stage of its development, with commensurate opportunities for employees, under the ownership of a deeply experienced and high calibre retail group, Nick Scali,” he said. “For Greenlit Brands, this transaction realises an asset on behalf of our parent company, Steinhoff International, in an orderly fashion and for fair value.”

Ford explained that Greenlit Brands is planning to invest in its team, business and brands as the company plan to evaluate its strategic opportunities. “The financial and operational strength of Greenlit Brands, underpinned by our solid balance sheet and our suite of iconic brands – all of which are profitable – puts us in a strong position to continue to build remarkable retail businesses and to create value,” he said.

Nick Scali reported a 42.1 percent increase in sales to $373 million, with its NPAT doubling to $84.2 million. Online orders skyrocketed from $3 million in FY20 to $18.3 million in FY21 –  an increase of over 500 percent.

Nick Scali has plans to expand its online offering, including a visualising tool for its e-commerce platform, expected to debut this year. Despite this impressive growth in both online and in-store sales, the retailer did not have the confidence to share its guidance for FY22, based on pandemic precautions.

The purchase is subject to customary working capital adjustments and several conditions precedent.

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