Quadrant PE explores sale of Amart Furniture
Quadrant Private Equity has appointed advisers to manage the sale of Amart Furniture. The private equity firm aims to benefit from rising consumer spending and a buoyant housing market.
Amart Furniture was established in 1970 by Queensland billionaire John van Lieshout. It operates 68 stores across Australia, specialising in affordable large-format furniture including lounges, dining sets, bedroom and outdoor furniture.
Quadrant took complete ownership of Amart in 2016, purchasing the remaining 25 per cent stake from Ironbridge Capital. Ironbridge originally acquired Amart from Lieshout in 2006 for approximately $500 million.
Quadrant previously explored divestment options for Amart, including an IPO managed by Jefferies in 2022 and a near-sale to Allegro Funds in 2020, disrupted by COVID-19.
Amart currently generates around $600 million in annual revenue and has earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $90 million. CEO Lee Chadwick, who joined Amart in 2014, is based in Brisbane.
Amart is again delivering positive same-store sales growth driven by interest rate cuts, increased home construction, and rising discretionary consumer stocks such as Temple & Webster and Nick Scali suggest favourable market conditions.
Quadrant has significantly restructured and refreshed Amart in recent years. The decision to explore a sale comes amid a challenging yet improving Australian housing market. Rising apartment prices and lower interest rates are boosting new construction viability, alleviating some pressure from Australia's housing shortage.
Quadrant has recently completed several successful divestments. These include selling premium pet food business Prime100 to Colgate-Palmolive for about five times its original investment, and disposing of phone accessories maker Quad Lock to Swedish-listed Thule Group in November 2024.
Amart Furniture is part of Quadrant’s $750 million No.3 buyout fund. Other businesses from this fund previously sold by Quadrant include Zip Water, Burson Auto Parts and Estia Health. Barbecues Galore remains as the last unsold asset within the fund.
