Acquisition of Snugsofa.com
10/01/2023 12:26
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RNS Number : 2766M ScS Group PLC 10 January 2023
For Immediate Release 10 January 2023
ScS Group plc
("ScS", or the "Group")
Acquisition of Snugsofa.com
ScS, one of the UK's largest retailers of upholstered furniture and floorings,
is pleased to announce that it has acquired the brand, domain names, website,
intellectual property and stock of Snugsofa.com ("Snug") from the
administrators of Snug Shack Limited for consideration of £875,000. Snug is
an innovative digital-first sofa and sofa-bed business specialising in modular
and re-configurable sofas.
Snug was founded by Robert and Peter Bridgman in 2018 as Europe's first
sofa-in-a-box concept, and has grown to become one of the largest retailers in
this segment of the furniture market. Snug's ethos is to offer a carefully
curated choice of products in a range of colours and configurations, with
quick delivery and excellent quality and customer service. Although
predominantly online, Snug also operates from one store in Leeds. We expect
there to be an opportunity to add Snug concessions to the Group's stores,
providing the brand with significantly improved national visibility and
penetration.
The Board believes the acquisition of Snug represents further progression in
ScS's strategy. Snug's strong brand and differentiated digital-first offering
will complement ScS's existing proposition, further diversifying its customer
base and increasing market share. Snug's innovative approach to social
engagement and digital marketing will be an asset to the wider ScS business
while Snug will benefit from the Group's expertise, supplier relationships and
scale.
Snug has 53 colleagues who have been a significant part of its success, and
that team will join the Group as part of the acquisition.
For the 12 months to 31 December 2022, Snug expects revenues of c£20m. Going
forward under ScS's ownership we aim to further grow the business. Snug will
report in line with the Group's financial year, apply the Group's accounting
policies and is expected to be earnings accretive in FY24.
Steve Carson, Chief Executive Officer of ScS, commented:
"Snug is an exciting and young business with great potential. It has a strong
and recognisable brand, a differentiated product and targets a market that
complements our proposition. In that regard, it presents us with an exciting
opportunity to further increase market share. We therefore, view it as a great
strategic and cultural fit which reinforces our commitment to helping our
customers create the home they love. We look forward to welcoming our new
colleagues into the ScS family."
Enquiries:
ScS Group PLC c/o Buchanan +44 (0)20 7466 5000
Steve Carson, Chief Executive Officer
Chris Muir, Chief Financial Officer
Buchanan Tel: +44 (0)20 7466 5000
Richard Oldworth scs@buchanan.uk.com (mailto:scs@buchanan.uk.com)
Toto Berger
Verity Parker
Shore Capital Tel: +44 (0)20 7408 4050
Patrick Castle
James Thomas
Iain Sexton
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and
floorings, promoting itself as the "Sofa Carpet Specialist", seeking to offer
value and choice through a wide range of upholstered furniture and flooring
products. The Group's product range is designed to appeal to a broad customer
base with a mid-market priced offering and is currently traded from 100
stores.
The Group's upholstered furniture business specialises primarily in fabric and
leather sofas and chairs. ScS sells a range of branded products which are not
sold under registered trademarks and a range of branded products which are
sold under registered trademarks owned by ScS (such as Endurance, Inspire and
SiSi Italia). The Group also offers a range of third party brands (which
include La-Z-Boy, Ideal Home and G Plan). The Group's flooring business
includes carpets, as well as laminate and vinyl flooring.
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