Sofa giants join forces as DFS acquires Northern rival for £25m

Sofa company DFS has this morning (December 1) confirmed the legal completion of an eight-figure deal to acquire rival retailer Sofology.

The transaction, first revealed in August as Doncaster-headquartered DFS vowed to keep stores open following the purchase, was valued at £25m.

A further consideration payable will depend on Sofology’s underlying EBITDA over the 12 months to September 30 2018.

DFS was given the go ahead to acquire Sofology, which is headquartered in Warrington, in November by the Competition & Markets Authority and the Financial Conduct Authority.

Commenting at the time, DFS chief exec 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.”

He continued: “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 [Sofology CEO] Jason Tyldesley and his team to continue this success.”

Investment firm GCA Altium, which has an office in Manchester, advised on the transaction.

DFS Furniture plc arrived on the London Stock Exchange in March 2015, in a float that valued the firm at around £500m.

The IPO marked a return to the stock market for the retailer, which first floated in 1993 but was made private again by its founder, Graham Kirkham, in 2004.