DFS completes Sofology acquisition for £25m.
Furniture company DFS today legally completes its acquisition of Sofology for £25m.
In an update this morning, the company said any further consideration payable would be calculated based upon the 12 months ending 30 September 2018.
The merger of Doncaster-based DFS Furniture and Sofology was last month given the go ahead by the Competition and Markets Authority.
The CMA has decided not to refer the merger to a phase two investigation under the provisions of the Enterprise Act 2002; giving the it the green light to proceed.
Earlier this year, DFS acquired Sofology, which has its headquarters in Warrington, for £25m. Today’s decision by the CMA means the acquisition will now complete on 30 November. DFS anticipates taking on the 40 Sofology stores in FY18.
DFS CEO, Ian Filby, said: “I’m delighted that we are able to complete this deal, which is a big step for DFS towards achieving one of our strategic growth aims of broadening our product and brand appeal. Sofology is a fantastic business that takes great pride in the levels of service and innovation it provides to customers and is a great addition to our family.
“This is an important and historic moment for both businesses, our investment demonstrates the confidence we have in Sofology and the wider Group. I look forward to working with Jason Tyldesley and his team to continue this success.”
Sofology’s revenues stood at £143m in 2016 and it made an EBITDA loss of £2.7m.
GCA Altium advised on the deal.