Sunderland sofa group ScS is set be taken into private ownership following a cash offer from an Italian business which values it at almost 拢100m.

The Wearside retailer, which has 100 stores across the 海角视频 selling soft furnishings, flooring and furniture, has received an offer from Cerezzola Limited, a subsidiary of Poltronesof脿 SpA, in which ScS shareholders will be entitled to 280p per share. The transaction values ScS鈥檚 entire share capital at approximately 拢99.38m 鈥 and ScS directors, advised by Shore Capital, consider the terms of the acquisition to be 鈥渇air and reasonable鈥.

The stock market announcement on the offer details how the Poltronesof脿 Board believes there is a 鈥渃ompelling strategic and financial rationale for undertaking the acquisition鈥, giving it a way into the 海角视频 market as the next step in its successful pan-European expansion.

The announcement says: 鈥淗aving followed the 海角视频 market and its key players for a significant amount of time, Poltronesof脿 believes that ScS and Poltronesof脿 share many common values and principles. Poltronesof脿 admires ScS鈥檚 significant presence in the United Kingdom sofa and furniture market, as well as its strong brand position, and recognises that ScS is a strong business with a widespread and established base of 100 well-located and spacious showrooms in the United Kingdom.

鈥淢oreover, ScS benefits from, a well-invested and growing digital e-commerce platform, industry-leading operational excellence, and resilient financial performance.

Established in Reggio Emilia in 1995, Poltronesof脿 has become the leading sofa retailer in Italy and one of the leading sofa retailers in Europe. It designs and sells sofas and armchairs, as well as sofa beds and decorative accessories and retails them through its 167 stores in Italy, 106 stores in France and 27 further stores across Europe.

ScS, meanwhile, is one of the 海角视频鈥檚 largest retailers of sofas, flooring and furniture with more than 1,700 staff, having started trading in Sunderland in 1894 in one family-owned general home furnishings store, under the name Suite Centre Sunderland. Rebranded as Sofa Carpet Specialist in 2012, it now trades under the core ScS brand and the recently-acquired Snug brand, and has seen huge growth since listing on the London Stock Exchange in 2015.

The ScS Directors intend to recommend unanimously that ScS shareholders vote in favour of the scheme and, subject to the satisfaction of a number of conditions, the acquisition is expected to become effective in the first quarter of 2024.

Renzo Ricci, chief executive officer of Poltronesof脿, said: 鈥淎s the next step of Poltronesof脿鈥檚 pan-European expansion, the acquisition represents the best opportunity for Poltronesof脿 to enter the United Kingdom market of upholstery products. Poltronesof脿 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鈥檚 ambitions, the acquisition will help ScS realise its full growth potential.鈥

Alan Smith, non-executive chair of ScS, said: 鈥淭his cash offer, which the ScS board unanimously recommends, comes at an attractive valuation. It recognises the quality of the ScS Group鈥檚 operations, its cash resources, and the progress accomplished under Steve Carson鈥檚 leadership via his refreshed strategy. Poltronesof脿, based in Italy, is a pan-European sofa retailer that has been successfully pursuing international expansion and ScS, with 海角视频 operations, is the next juncture of that strategy.

鈥淭he ScS board believes Poltronesof脿 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 海角视频.鈥