Nick Scali Limited (ASX:NCK) agreed to acquire 100% stake in Plush-Think Sofas Pty Ltd from Greenlit Brands Household Goods Pty Limited for approximately AUD 110 million on October 4, 2021. As per the term of consideration, Nick Scali Limited will pay a total cash consideration of AUD 103 million, subject to certain purchase price adjustments at completion. The Acquisition will be funded through a combination of $37.5 million of available cash reserves and $65 million corporate debt facility.

The Acquisition is subject to closing conditions and expected to complete in the fourth quarter of 2021. Macquarie Capital (Australia) Limited is acting as financial adviser and Ashurst is acting as legal adviser to Nick Scali Limited. For the fiscal year ended March 31, 2021 Plush-Think Sofas Pty Ltd reported total revenue of AUD 160 million and EBITDA of AUD 27 million.

The Acquisition is expected to be EPS accretive in the first full year of ownership excluding realisation of estimated synergies which will flow post integration.