ScS agrees £99m sale to Italian retailer group
UPDATE: UK shareholders have backed the deal for ScS to be taken private by Italian furnishing group Poltronesofà. ScS announced just before Christmas that it has received the requisite majority from shareholders to approve the plan and it is likely to go ahead on January 30, subject to a technical court hearing unger the UK Companies Act.
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Major flooring and furniture retailer ScS is set to be taken private by an Italian group after a deal which values the 100-store company at almost £100m was recommended to shareholders.
Cerezzola Limited, a wholly-owned subsidiary of Poltronesofà S.p.A., has made an offer under which each ScS shareholder will be entitled to receive 280 pence, valuing the company at about £99.4m.
Renzo Ricci, chief executive 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, commented: "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," said Mr Smith.
Sunderland-based ScS will cease to be a listed PLCon the UK stock exchange. The group has 100 stores across the UK with more than 1,700 employees.
