Furniture retailer Nick Scali is entering the UK market through acquiring Anglia Home Furnishings, trading as Fabb Furniture, for £3.5 million ($6.7 million).

Nick Scali intends to pay $1 million to exercise the option to exit the existing distribution centre arrangement and inject up to $11.5 million of working capital.

After the acquisition, Nick Scali said it plans to invest in the existing Fabb Furniture network, which will include store refurbishments and rebranding, setting up a new distribution centre, and opening new stores.

The rebranded and refurbished store network will transition to the Nick Scali product range.

“The acquisition provides us an immediate entry point into the large UK market with a 21-store network across key locations, a scaled platform to establish the Nick Scali brand and product offering in an attractive new market,” said Nick Scali CEO Anthony Scali.

“As we did when we acquired Plush, we believe we can leverage the Nick Scali buying power, combined with our supply chain and logistics capabilities, to deliver significant gross margin uplift for the UK business.”

Nick Scali raised $46 million through an underwritten institutional placement and $4 million through a conditional placement, to fund the acquisition and additional investments.

The company expects to close the transaction in mid-May, subject to customary conditions.