10 Jan 2023 12:26
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 Steve Carson, Chief Executive Officer Chris Muir, Chief Financial Officer | c/o Buchanan +44 (0)20 7466 5000 |
Buchanan Richard Oldworth Toto Berger Verity Parker | Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
Shore Capital Patrick Castle James Thomas Iain Sexton | Tel: +44 (0)20 7408 4050 |
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.