ScS to be bought by Italy's Poltronesofà in £99.4m deal

24th Oct 2023 08:21

(Sharecast News) - ScS surged on Tuesday after it agreed to be bought by Italian furniture retailer Poltronesofà in a £99.4m deal.

Under the terms of the transaction, ScS shareholders will receive 280p per share. This consists of 270p in cash and a final dividend of 10p for the year ended 29 July.

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."

At 0820 BST, the shares were up 61% at 272.0p.

Danni Hewson, head of financial analysis at AJ Bell, said: "It says something about the prospects for selling big ticket items that shareholders in sofa seller ScS are likely to welcome a premium-priced bid from an Italian rival with open arms despite the bid being pitched some way below the stock's 2021 highs.

"Back then a large number of people had both the capacity and willingness to shell out on new seating for their living rooms - now budgets are tighter and spending priorities have shifted."