DFS Furniture gets CMA approval for acquisition of Sofology

22 November 2017 (Last Updated November 22nd, 2017 10:57)

British furniture retailer DFS Furniture has received approval from the UK Competition & Markets Authority (CMA) in connection with its previously announced acquisition of Sofology.

British furniture retailer DFS Furniture has received approval from the UK Competition & Markets Authority (CMA) in connection with its previously announced acquisition of Sofology.

In a separate development, the Financial Conduct Authority (FCA) has also approved the transaction.

With the approvals, the deal is expected to complete on 30 November.

DFS Furniture 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.

“This is an important and historic moment for both businesses, our investment demonstrates the confidence we have in Sofology and the wider group.”

“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.”

The agreement related to the acquisition was signed in August.

Founded in 1974, Sofology is focused on upholstered furniture and operates 40 stores in the UK.

For the financial year ending 31 December last year, Sofology registered revenues of £143m.

Revenues of DFS fell by 4% when compared to last year.

As a result, the company expects the earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year to be at the low end of the £82-£87m range.

The retailer is planning to open new stores in Wednesbury, Rugby and Haverfordwest.

DFS currently operates 121 stores in the UK, Republic of Ireland, the Netherlands and Spain.