Scottish independent retailer Sterling Furniture has confirmed the acquisition of fellow independent Forrest Furnishing.
The merger, with the details remaining undisclosed, sees both companies come together to create a business of more than £50m, employing around 600 staff, and will be based at Sterling’s Tillicoultry headquarters.
Forrest Furnishing’s chairman, Ken Forrest – who has run the Glaswegian company since 1972, has confirmed his retirement following the acquisition, while Sterling also stated that Forrest managing director, Graham Spurr will continue to lead the business as Forrest Furnishings and as an independent retailer.
In a statement, Sterling managing director, Gordon Mearns said: “I can confirm that Sterling Furniture has purchased Forrest Furnishings following the retirement of Ken Forrest, owner of Forrest Furnishings.
"Forrest Furnishings managing director, Graham Spurr, will continue to run the business as Forrest Furnishings and as an independent retailer, which will be separate from Sterling Furniture.
"We are delighted to have concluded on this purchase that will ensure that another independent furniture retailer, with similar high standards and values in service and quality as ourselves, continues to operate."
The news follows Forrest Furnishing’s recently filed accounts that showed a giant hike in profits of £3.6m for the year ended 31 December 2015, following the sale on its Macdonald Furniture Galleries showroom on Glasgow’s Cathedral Street, which returned a gain of £3.4m.
The profit growth adds to Sterling’s £2.1m return, increasing by 159.9% on its previous year in its latest figures for the year ending February 2015. Sterling then reported a sales uptick of 11.6% to £50.1m, while Forrest saw sales rise by 7.3% to £8.8m, combining the two turnovers at just under £58.9m.