Greenlit Brands has agreed to sell its Plush home-furniture business to Nick Scali in a deal that values the business at $110 million.
The transaction is scheduled to be settled next month once customary working capital conditions and conditions are met, with $7 million in cash to remain in the Plush business at handover.
Michael Ford, executive chairman and group CEO of Greenlit Brands, said the transaction realises an asset on behalf of Greenlit’s parent company, Steinhoff International, “in an orderly fashion and for a fair value”.
“For Plush, this outcome crystallises the opportunity for the business to grow to the next stage of its development, with commensurate opportunities for employees, under the ownership of a deeply experienced and high calibre retail group, Nick Scali.”
Ford conveyed confidence in the company’s ongoing commitment to its Australian businesses. “Looking ahead, Greenlit Brands remains fully committed to continuing to invest in our people, our businesses and our brands while we continue to carefully evaluate our strategic options and opportunities,” he said in a statement.
“The financial and operational strength of Greenlit Brands, underpinned by our solid balance sheet and our suite of iconic brands – all of which are profitable – puts us in a strong position to continue to build remarkable retail businesses and to create value.”