EXCLUSIVE: South African Company Close To Snaring The Good Guys Say Insiders
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South African-based retailer Steinhoff International, which owns furniture chain Freedom Group, bedding chain Snooze and discount furniture retailer Poco is believed to be close to snaring The Good Guys.


Andrew Muir is understood to have been working with boutique Melbourne-based advisory firm Helfen Corporate Advisory on the deal that became complicated because of a buyback scheme that was being put to franchisee owners of several The Good Guys Stores.

Now we can reveal that management from Steinhoff International are meeting this week with The Good Guys management in Melbourne.

Insiders have told ChannelNews that the deal will be announced in June and that currently Steinhoff management are doing a final audit of the books.
 
This is not the first time that the Company has been pursued by interested parties. 

Three years ago JB Hi Fi management ran a ruler over the mass retailer but the asking price was believed to be too high.

ChannelNews understands that the purchase price is between $850M and $900 Million.
 
The Good Guys which is owned by the Muir family recently undertook a buy-back of 57 joint-venture stores.

ChannelNews understands that The Good Guys management who have been in discussions with Dick Smith receivers Ferrier Hodgson, are looking to close some of their buy back stores while expanding into the Dick Smith stores.
 
If the deal falls through and the receivers are unable to find a buyer for the stores The Good Guys could still approach property or mall owners to take on a new lease. 

The Good Guys are currently eyeing about 20 former Dick Smith shops, which would lift the total number of corporate stores to around 120.

The Financial Review claimed that over the last few years, The Good Guys has been linked to a myriad of potential suitors, including Wesfarmers, JB Hi-Fi, UK retailer Dixons and private equity investors.


In late 2015, The Good Guys’ owners, the Muir family, were understood to be contemplating an initial public offering but that was dropped when the Dick Smith stores went into liquidation.


Steinhoff International, which has operations in more than 20 countries, emerged as one of the largest ?retailers in Australia two years ago after buying fellow South African retailer Pepkor Holdings.


Last week the highly acquisitive company tried to gazump an offer for UK electricals retailer Darty from France’s Fnac and last month it tried to trump Sainsbury’s bid for Home Retail Group.


Muir was believed to have been seeking at least $1 billion when he last entertained offers for the business.