12 hours ago
Amart reveals plan to purchase Freedom Furniture in $1b merger to shake up local retail market
Aussie furniture retailer Amart has announced plans to purchase Freedom Furniture and create a powerhouse which will turn over about $1 billion annually.
The takeover of Greenlit Brands' Freedom Furniture by Amart, which is backed by Quadrant Private Equity, will establish a group with 120 stores across Australia and New Zealand.
The two businesses will remain separate and facilitate one another as they both look to expand their store numbers.
Both companies are in competition against Harvey Norman, which turns over about $6b annually, while Freedom Furniture rivals ASX-listed designer furniture retailer Nick Scali.
There are currently 196 Harvey Norman, Domayne and Joyce Mayne stores in Australia alongside 45 in New Zealand.
Freedom Furniture has 47 stores across Australia, 13 in New Zealand and six distribution centres alongside offices in Sydney and Auckland.
Amart currently has 66 stores and could target about 100 stores, while Freedom Furniture could expand to an 80-100 store network, according to the Australian Financial Review.
Freedom Furniture's CEO Blaine Callard said joining forces with Amart was key for the company's growth.
'Freedom has achieved significant momentum thanks to our team and loyal customers,' Mr Callard said.
'We're excited about the opportunity to continue our growth journey alongside Amart, while staying true to our mission of offering inspirational, design-led products for the home.'
Amart chairman Chris Hadley said the acquisition will ultimately be a boon for customers.
'Freedom is an iconic furniture brand across Australia and New Zealand, which is highly complementary to Amart,' Mr Hadley said.
'This acquisition will result in greater choice and value for customers. We look forward to welcoming the Freedom team to Amart and supporting their next phase of growth.'
Amart's CEO Lee Chadwick added to this sentiment, arguing the deal creates a better platform for Freedom Furniture as it looks to bolster growth and further its customer reach.
'We are excited to support Freedom on the next wave of its growth journey from expanding the store network and growing online sales, to strengthening product range and category depth,' Mr Chadwick said.
'The combined business is well placed to deliver quality, stylish products to more customers, more often.'
Amart said the merger will allow the combined business to increase scale, boost supply chain efficiency and investment capability while each outlet maintains their own identities.
Following the deal, Greenlit now only holds Fantastic Furniture in its Australian furniture stable.
Greenlit came from its parent group Steinhoff International Holdings after it became engulfed in controversy for overstating its profits.
The Amart-Freedom Furniture merger is yet to be approved and is subject to customary conditions.
