CMA clears DFS' £25m Sofology acquisition

The UK's largest furniture retailer DFS (LON: DFS) has been given the all-clear today by the Competition and Markets Authority (CMA) for its proposed takeover of smaller rival Sofology.

The £25m deal which was first announced on August 3 has been allowed to proceed with no conditions and will be finalised on November 30.

Sofology currently has 40 stores and annual Revenues of £143m in FY16, adding to the already 178 DFS Group stores and £762m in Revenues last year.

The deal comes amid challenging market conditions for retailers as well as profit warnings from DFS in June.

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The acquisition of Sofology sees the brand added to DFS Group's already solid portfolio which includes DFS stores, Dwell, and Sofa Workshop.

Chief Executive of DFS Ian Filby commented:

"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."

DFS shares have ridden a number of ebbs and flows over the past several years and currently trades at c. 191p with a Market Cap of £403m.

After loss-making years in FY13 and FY14, DFS has since recovered and is forecast to make a Net Profit of £40m from £811m in Revenues in FY18.