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South African conglomerate Steinhoff International has announced it has entered into a deal to acquire Australian-based furniture firm Fantastic Holdings.

According to market sources, Steinhoff has placed a bid in the value of $361.4m, with Steinhoff paying Fantastic’s shareholders $3.50 in cash per share, which is expected to be completed by the end of this year.

It is understood that the board of Fantastic Holdings unanimously recommended shareholders to accept the offer, with completion subject to the usual raft of conditions, including the go ahead from stockholders and the Federal Court of Australia.

Investec Australia and Minter Ellison have both been hired to advise Steinhoff on the deal.

In a statement, director of the buyer, Tim Schaafsma, said: “The addition of Fantastic Holdings, its brands and manufacturing operations will broaden our brand portfolio and accelerate the growth of Steinhoff Asia Pacific in Australasia.”

Sydney-based Fantastic Furniture Holdings specialises in the retail and manufacturer of furniture, with operations at over 126 stores across four furniture chains.

Fantastic becomes the latest Australian business to come under the Steinhoff umbrella, joining its portfolio of the Pepkor group and Freedom Furniture, which as acquired back in the early 2000s.

Steinhoff has been securing acquisitions to develop its group at a rapid pace this year, already completing deals for American bedding retailer Mattress Firm and UK value chain Poundland for $2.4bn and £597m respectively.