Amart, backed by Quadrant Private Equity, agreed to acquire its competitor Freedom Furniture from Greenlit Brands, forming a major retail enterprise with $1 billion in annual revenue.
The combined group will run about 120 stores across Australia and New Zealand with 2,200 employees and over $100 million in yearly profits.
“Freedom is an iconic furniture brand across Australia and New Zealand, which is highly complementary to Amart. This acquisition will result in greater choice and value for customers,” said Chris Hadley, Chairman of Amart.
“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. The combined business is well placed to deliver quality, stylish products to more customers, more often,” said Lee Chadwick, CEO of Amart.
The Australian Financial Review (AFR) reported that Chadwick, who has been serving as CEO of Amart for 10 years, will head the combined group.
The report added that Freedom aims to expand to 80 to 100 stores while Amart is seeking to reach 100 stores. The AFR also noted potential a listing of the combined group on the ASX as soon as next year.
Meanwhile, Blaine Callard will continue as CEO of Freedom as part of the agreement with Quadrant.
Prior to becoming CEO of Freedom in 2019, he worked as CEO of Harvey Norman in Ireland, where he also previously held several leadership roles.
“Freedom has achieved significant momentum thanks to our team and loyal customers. 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,” said Callard.