Steinhoff to sell UK furniture retailing business to Alteri Investors

European retail sector investor Alteri Investors has agreed to acquire Blue Group, the UK furniture retailing business of South African retail company Steinhoff
International, as per the latest retail acquisition news.

Blue Group is the owner of Bensons for Beds, Harveys Furniture and upholstery and bedding manufacturers Relyon, Steinhoff UK Beds and Formation Furniture.

Louis du Preez – Steinhoff Group CEO said: “The sale of Blue Group is the latest in a
series of planned divestments by Steinhoff as we continue with our announced strategy
of simplifying the Group’s portfolio and deleveraging our balance sheet. We have
enjoyed a long association with the Blue Group businesses, and we wish Alteri and the
Blue Group management team every success with their future plans.”

Steinhoff to sell UK furniture retailing business to Alteri Investors. Image by Free-Photos from Pixabay.

Owned by Steinhoff since 2005, Harveys and Bensons for Beds trades from 269 stores. The group, which has four manufacturing sites and five distribution centres in the UK, has a workforce of over 2,700 people. Its annual turnover is said to be more than £500 million.

Bensons for Beds, on the other hand, which has been in business for nearly 70 years, is among the largest bed retailers in the UK on the basis of store number and the third-largest in terms of revenue.

Founded in 1966, Harveys is claimed to be the largest furniture specialist in the UK on the basis of store number.

According to Steinhoff, the associated group of manufacturing firms has several years of expertise within bedding and upholstery. The group is claimed to have a market-leading position in the production of high-quality mattresses, divan sets, and furniture.

The manufacturer supplies the retail business apart from various well-known high street retailers.

Steinhoff said that with the support of new owners, management can drive continued
improvement in the performance of the group, having made progress already with a
series of initiatives taken up since 2018.

Alteri Investors will be making the investment from its second investment vehicle, which was launched in August 2019, with the support of funds and accounts managed by affiliates of Apollo Global Management.

Gavin George – Alteri Investors founder and CEO said: “This is exactly the type of
investment opportunity our second fund was launched to find – trusted retail brands with strong management and the potential for profitable growth.

“We are really excited to support Mark and the team on a successful turnaround of the business and are confident that our operational capabilities, alongside the injection of fresh capital, can help to build a market leading, vertically integrated business with a strong omnichannel presence.”

The transaction is subject to regulatory approval.