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Nick Scali acquires Plush

Nick Scali shares surged on Monday after it announced it would acquire Plush Think-Sofas for $103 million. Plush is a specialist Australian sofa retailer, operating a network of 46 showrooms across 6 Australian states and territories.


The acquisition will increase Nick Scali’s current footprint to a total combined 108 stores in Australia and New Zealand, enhancing the opportunity to open new Plush stores in currently underrepresented catchment areas and with greater floorplan flexibility. The company believes there is potential for Plush to achieve a long-term store network target of 90-100 stores in addition to Nick Scali’s long term network target of at least 85 stores.

Management believes that the acquisition will facilitate material synergies to the combined business after a two-year integration period, excluding one-off implementation costs. Synergies are expected to be generated from a combination of increased buying power, logistics and supply chain efficiencies, procurement synergies and support function efficiencies.


The acquisition is expected to be EPS accretive in the first full year of ownership excluding realisation of estimated synergies which will flow post-integration.


Founded in 1999 and originally operating as Plush Leather, Plush has subsequently grown into a network of 46 showrooms across Australia. It is positioned as a mid-market, made to order sofa retailer with a focus on the aspirational customer demographic.

The acquisition will be funded through a combination of cash on hand and new debt facilities and is subject to closing conditions and is expected to complete in the fourth quarter of 2021.


Nick Scali CEO, Anthony Scali, said “Plush is a high-quality Australian sofa retailer with a strong track record of profitability and performance over a long period of time. The acquisition is a strategic opportunity for Nick Scali and will allow us to leverage the increased scale of the combined group whilst providing a platform to significantly grow the store network.”