Advertisement

Nick Scali Gears up for UK Entry

Reading Time: 2 mins
By Published On: April 26, 20240 Comments

Nick Scali has purchased a UK furniture company as it announces growth plans and entry into the UK Market.

Australian furniture importer and retailer Nick Scali has announced it will be taking on the UK market.

The furniture giant has this week entered into agreement to acquire specialist UK home furniture retailer, Anglia Home Furnishings Limited, trading as Fabb Furniture. Founded in 1979, Fabb Furniture has a long-established presence in the UK home furnishings market. It operates 21 large-format stores in the UK.

Nick Scali CEO, Anthony Scali said: “the Acquisition of Fabb Furniture provides an opportunity to enhance our geographic diversity and scale beyond Australia and New Zealand for the first time.” 

“The Acquisition provides us an immediate entry point into the large UK market with a 21-store network across key locations; a scaled platform to establish the Nick Scali brand and product offering in an attractive new market.” Mr Scali continued: “Fabb Furniture’s gross margin is estimated to be approximately 10 percentage points lower than larger UK competitors on a like for like basis.”

The furniture market in the UK is valued at about $24 billion. 

According to the announcement, under the Acquisition, Nick Scali will acquire Fabb Furniture for a consideration of $3.82 and all of the secured debt owed by Fabb furniture for $6.7 million. Nick Scali intends to pay $1 million  to exit the existing distribution centre arrangement and also provide a net working capital injection of up to$11.5 million.

Post acquisition, the company intends to invest further in the existing Fabb Furniture network in order to establish the Nick Scali brand in the UK pursuant to its UK growth strategy, including via store refurbishments and re-branding, establishment of a new distribution centre and new store openings which will transition to the Nick Scali product range.

The Acquisition and additional investment will be funded by a $46 million underwritten institutional placement and a $4 million conditional placement to an entity associated with Anthony Scali, CEO and Managing Director of Nick Scali, subject to shareholder approval being sought at the company’s AGM expected to be in October 2024.

CEO and Managing Director, Anthony Scali said: “We are very pleased with the strong support for the Institutional Placement and our growth plans in the United Kingdom. The acquisition of Fabb Furniture and entry into the UK market is an important strategic step for Nick Scali which is expected to unlock a significant opportunity for profitable growth in the future.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

Share this story!

Leave A Comment

Advertisement
Advertisement
Advertisement
Advertisement