Nick Scali has experienced huge growth during Covid as cashed up customers who are stuck at home are spending endless amounts of money making home more comfortable. This has put Nick Scali in a great position financially. Nick Scali has reported a net profit rise of 90 percent to $40.6 million for the six months ending in December 2020. Sales were up 24.4 per cent to $171.1 million.
Nick Scali is looking for growth through acquisitions and with this, purchasing all brands of furniture businesses is on the cards. Especially attractive are businesses where Nick Scali can achieve some business synergies with. Ultimately, the long term value that can be gained for shareholders by purchasing the business will be the deciding factor.
With this, Nick Scali is looking to expand its investments and acquisitions with a war chest of over $54 million. Their latest acquisition attempt is the Plush Sofa’s chain which is currently owned by Greenlit Brands. Plush has a huge presence nationally with 46 stores Australia wide as well as an online store. They selling everything sofa related including Sofas, cushions, rugs and accessories.
Nick Scali has reported that Managing director Anthony Scali is in talks with Greenlit Brands regarding a potential purchase of Plush Sofas. The talks with Greenlit Brands was non exclusive and whether a deal will come to fruition is yet to be determined.
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