ScS will be taken private following a recommendation to the shareholders of a deal which values the British sofa retailer for almost £100million.
Cerezzola is a fully owned subsidiary of Poltronesofa an Italian furniture retailer. It has offered ScS shareholders 280p per share, valuing ScS at approximately £99.4million. This is a price increase of over 60% compared to Monday’s close of 169p, but still below the peak of 320p in June 2021 due to pandemic.
ScS’s directors, who were advised by Shore Capital the broker, deem the terms of acquisition “fair and reasonable”. Following the announcement, shares in the Sunderland business rose by 102p or 60% to 271p. The Poltronesofa Board said that there were “compelling financial and strategic reasons” for the acquisition, as it would allow the company to expand into the UK.
Poltronesofa was founded in northern Italy, in 1995. It has since become a major sofa retailer throughout Europe and Italy. It sells sofas, armchairs, sofa beds, decorative accessories and more through its 167 Italian stores, 106 French stores and 27 other stores throughout Europe.
ScS traces its roots back to 1894 when it was known as Suite Centre Sunderland. In 2012 it was rebranded Sofa Carpet Specialist, and in 2015 returned to the stock exchange. Today there are 100 shops with more than 1,800 employees. It bought Snug this year, an online retailer of modular sofas.
ScS directors plan to unanimously recommend that ScS shareholders approve the scheme. Subject to certain conditions, it is expected that the acquisition will become effective during the first quarter next year.