(Alliance News) - ScS Group PLC on Tuesday said it has bought the brand, domain names, website, intellectual property and stock of Snugsofa.com from the administrators of Snug Shack Ltd for GBP875,000.

ScS is a Sunderland-based furniture and floorings company. Snug, founded in 2018, is a digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas. Although predominantly online, Snug also operates one store in Leeds.

ScS said the acquisition of Snug represents further progression in its strategy.

"Snug's strong brand and differentiated digital-first offering will complement ScS's existing proposition, further diversifying its customer base and increasing market share. Snug's innovative approach to social engagement and digital marketing will be an asset to the wider ScS business while Snug will benefit from the group's expertise, supplier relationships and scale," ScS explained.

Further, under the acquisition, Snug's 53 colleagues will join ScS.

In 2022, Snug expects to report revenue of around GBP20 million. ScS expects Snug to be earnings accretive in its financial 2024 ending July 31.

Going forward Snug will report in line with ScS' financial year.

Chief Executive Steve Carson said: "Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition.

"In that regard, it presents us with an exciting opportunity to further increase market share. We therefore, view it as a great strategic and cultural fit which reinforces our commitment to helping our customers create the home they love," Carson added.

Shares in ScS were up 2.1% to 177.70 pence each in London on Tuesday afternoon.

By Sophie Rose, Alliance News reporter

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