Following a successful first half, furniture business Nick Scali has offered Greenlit Brands an undisclosed sum to buy up its Plush Sofas business.

The two businesses are in non-exclusive discussions, and should any transaction take place, Nick Scali said it will likely be able to fund it with cash on hand and debt.

“As previously communicated to the market, the Company actively considers acquisitive growth opportunities from time-to-time having regard to the strategic rationale, available synergies, financial impact and the long-term value created for Nick Scali shareholders,” Nick Scali said in a letter to shareholders.

Greenlit Brands told Inside Retail it wouldn’t comment on the matter.

According to a report in The Australian, the buy-up could be part of a larger divestment by Greenlit which is reportedly also looking to sell off Freedom Furniture, Snooze and Original Mattress Factory.

Nick Scali said it had almost doubled profit during the six months to February, with net profit hitting $40.5 million from $20.3 million – a 99.5 per cent jump.

“[We] had many challenges to navigate including government mandated store closures, supply chain issues and significant delays experienced with global shipping providers,” said managing director Anthony Scali.

“Despite these events, the team was able to capitalise on shifting consumer spending patterns and deliver a record result.”

More to come.