LONDON, UK: Poltronesofà S.p.A., via its subsidiary Cerezzola Limited, has offered to acquire ScS Group Plc. Under the terms, ScS shareholders will be entitled to receive 280 pence for each share including 270 pence in cash and a final dividend of 10 pence for the year ended 29 July 2023.

According to a bourse filing, yhe transaction values ScS Group’s entire issued and to be issued share capital at approximately £99.387 million on a fully diluted basis.

Poltronesofà is widely recognised for its focus on a high-quality customer experience while offering Italian-manufactured products at affordable prices.

Its fabric sofas are produced in the Forli and Faenza district, whilst leather sofas are produced in the Puglia and Basilicata district.

Poltronesofà’s customers appreciate the extensive optionality for customisation, with the wide range of models and versions being customisable through Poltronesofà’s extensive range of upholsteries.

This customer-centric offering is made available at a very convenient price range and also comes with a full team of well-trained and experienced professionals at the customer’s service who are available at any moment to assist throughout the purchase process.

ScS is one of the UK’s largest retailers of sofas, flooring and furniture. It trades as two separate brands — the core ScS brand and the newly acquired Snug brand.

The ScS brand seeks to offer value and choice through a wide range of sofas, flooring and furniture products. The product range is designed to appeal to a broad customer base with a mid-market priced offering and is currently traded from 100 stores.

The brand specialises primarily in fabric and leather sofas and chairs, selling a range of branded products which are sold under registered trademarks that are not owned by ScS (which include La-Z-Boy, Ideal Home and G Plan) and a range of branded products which are sold under registered trademarks owned by ScS (such as Endurance, Inspire and SiSi Italia).

The flooring business includes carpets, rugs, wood, laminate and luxury vinyl tiling. Snug is an innovative digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas, with quick delivery and great quality and customer service.

Renzo Ricci, Chief Executive Officer 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, said: “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.”

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