Freedom Furniture has been sold to Quadrant Private Equity-backed Amart, creating a $1 billion home retail giant that is eyeing a potential ASX listing in the near future.

The acquisition brings together two of Australia’s largest furniture retailers, forming a group with 126 stores across Australia and New Zealand, more than 2,200 staff, and projected annual sales exceeding $1 billion.

While terms of the deal were not disclosed, the transaction marks the end of Greenlit Brands’ ownership of Freedom, a business it has been looking to offload since its parent company, South Africa’s Steinhoff International, became involved in a global accounting scandal in 2017.

Amart CEO Lee Chadwick will lead the combined business, with both Freedom and Amart to continue operating under their own brand names.

Freedom CEO Blaine Callard will remain at the helm of the brand he helped revive since joining in 2019, following a 24-year career at Harvey Norman.

Freedom is expected to deliver $410 million in sales and $20 million in earnings (EBITDA) this year, while Amart is aiming for $600 million in revenue and $90 million in earnings.

Quadrant has signalled the potential for a future initial public offering (IPO) but insists there is “no immediate rush”, according to The Australian Financial Review.

The acquisition is expected to streamline logistics and supply chain operations, while maintaining the separate brand identities and in-store experiences of both retailers.

For Greenlit, the sale leaves Fantastic Furniture as the only major brand in its portfolio. Over the past few years, Greenlit has sold Plush to Nick Scali and Snooze to Larry Kestelman’s Queens Lane Capital.

The deal will require regulatory approvals before final settlement.

Once completed, it positions Amart-Freedom as a strong competitor to Harvey Norman and Nick Scali in the Australian home retail market.