Steinhoff Asia Pacific, the owner of Freedom Furniture, is taking control of the super discount Fantastic stores in a $361.4 million takeover.
Fantastic Holdings, Australia’s largest sofa manufacturer, and the South African-based international retail company Steinhoff today announced the $3.50 per share cash offer, a 43% premium to yesterday’s close of $2.45.
Julian Tertini, the chair of Fantastic Holdings, says the offer is compelling.
“The 100% cash consideration provides Fantastic Holdings shareholders with certainty of value and an opportunity to realise their investment in full,” he says.
“Steinhoff Asia Pacific’s management team shares our vision for the growth and expansion of Fantastic Holdings and, as such, we believe they are the right long-term partner for our customers, employees, suppliers and other stakeholders.”
Tim Schaafsma, a director of Steinhoff Asia Pacific, says his company is excited about the opportunity to add Fantastic Holdings and its brands.
“Fantastic Holdings is a complementary business in terms of market segments, customer base and vertical integration,” he says.
“The addition of Fantastic Holdings, its brands and manufacturing operations will broaden our brand portfolio and accelerate the growth of Steinhoff Asia Pacific in Australasia.”
Fantastic in August posted a 9.4% rise in full revenue to a record $543.7 million. Like-for-like store sales were up 11.8%.
The company operates 125 stores across three furniture chains including Fantastic Furniture, Plush and the Original Mattress Factory in NSW and the ACT.