Semple Fraser WS - General Other - Homestyle Group has Acquired The Bed Shed Ltd

Date: 14 Jan 2002

The UK's leading bed retailer has acquired a leading Scottish competitor Homestyle Group PLC, the beds to furnishings company, has acquired The Bed Shed Limited and associated companies.

The initial consideration for the business and trading assets was satisfied in cash and loan notes, the latter being payable in March 2002. An additional consideration will be paid dependant on the business's turnover or profit in the year to 31 December 2001.

Rotherham-based Homestyle is already the UK's leading bed retailer with 228 Bensons Beds and 67 Sleepmasters stores across the United Kingdom. Commenting on the acquisition Michael Rosenblatt, Chief Executive, said: "The acquisition is consistent with our strategy of developing a complementary bed retailing format to our well established Bensons Beds business."

The Bed Shed is a leading bed retailer in scotland through 17 stores that trade with a strong value proposition. In the year eded 31 December 2000 the company and its associates made aprofit of £1.5 million on turnover of £9.1 million.

Peter Dean, partner at accountacny firm, Mazars Neville Russell, was instructed to find a buyer for the business. "Having carried out research in the market place we regognised early on that the Bed Shed would be a good fit for Homestyle and I am sure the new entity will go from strength to strength. This, I think is one case where the eventual outcome was a 'win-win' situation," he said.

Semple Fraser were solicitors to the shareholders of the Bed Shed Limited, providing general corporate and specialist advice during the sale process, including negotiating the terms of the sale documentation.

"Through the course of our review of the affairs of The Bed Shed Group, we were impressed to note the speed with which our clients had grown and established a highly profitable business, which had clearly attracted a great deal of interest as a target for acquisition," explained Stuart Russell.

"A contributing factor to the success of The Bed Shed business has been its oerpation of 'high street' stores. Ensuring that the readiness-for-sale of all property matters prepresented a significant undertaking, which was successfully completed within the timescales involved.

"We are delighted to have been involved in the successful disposal of The Bed Shed Group and have no doubt that the vendors will move on to continued success in their nex venture," he added.

Arthur Andersen acted as reporting accountants and tax advisors, carrying out due diligence on behalf of Homestyle.

Summary: Homestyle Group PLC, the Beds to furnishing company, has acquired The Bed Shed Limited and associated companies.

Advisors: Arthur Andersen, Mazars Neville Russell, Semple Fraser.

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