A HUGE UK sofa chain is set to be taken over in a £100m deal.
An Italian furniture retailer is set to take over the group that has more than 100 stores in the UK.
ScS is set to be taken over by Italian furniture retailer Poltronesofa.
The company has around 300 stores across Europe, but this is the first time it will enter the UK market.
This Italian company has existing operations in Italy, where it has 167 stores, in France, Belgium, Switzerland, Cyprus and Malta.
ScS has 100 outlets in the UK and a website offering, as well as the recently bought Snug brand.
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The business was founded in Sunderland in 1894 and is one of the UK's leading furniture and flooring specialists employing over 1,800 people.
Under the deal, Italy’s Poltronesofa will pay 280p a share, including a 10p dividend, valuing ScS at £99.4 million and marking a 66% premium on Monday’s closing price.
Alan Smith, non-executive chair of ScS, said: “Poltronesofa, 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 Poltronesofa 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.”
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Poltronesofa said the deal fits in with its aims to continue growing across Europe.
Chief executive Renzo Ricci said: “As the next step of Poltronesofa’s pan-European expansion, the acquisition represents the best opportunity for Poltronesofa to enter the United Kingdom market of upholstery products.”
He added it will help ScS “realise its full growth potential”.
It is a tough time for retailers at the moment as the cost of living has shoppers thinking twice before spending their hard-earned money.
In August popular discounter Wilko fell into administration after failing to find a buyer for the whole business.
Rival retailer Poundland stepped in and bought up 71 Wilko locations and has already started to open them as Poundland stores.
Poundland shops have opened up in old Wilko locations including Derbyshire, Bolton, Bicester, and Sheffield.
B&M also took over 51 of the former Wilko stores in a deal worth £13million.
However it is not all bad news for shoppers, some retailers are thriving.
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TK Maxx is also reportedly looking for new locations as part of expansion plans.
And Poundstretcher recently revealed plans to bring 50 new shops to the high street before the end of the year.
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