Likewise Group, the floor coverings distributor, has acquired a package of assets from collapsed rival Headlam Group for £14.9 million in cash, a deal it says makes it the largest distributor of floor coverings in the UK.
The purchase, funded entirely from existing cash resources following a recently completed £32.5 million equity fundraise, was made from Headlam's joint administrators at Interpath Ltd, which were appointed after Headlam entered administration on 8 September.
At the heart of the deal is Headlam's 90,000 square foot freehold distribution centre at Thatcham, which strengthens Likewise's coverage in the South of England.
The group has also acquired specialist flooring brands Crucial Trading and Concept Floors, along with principal intellectual property and inventory held at the Thatcham site.
Around 110 employees are expected to transfer to Likewise as part of the transaction.
Alongside the acquisition, Likewise has entered a nine-month agency agreement to help the administrators sell Headlam's remaining inventory through its own sales and distribution network, with proceeds shared between the two parties.
The assets are not expected to make a material contribution to profitability in the current financial year but are anticipated to contribute positively in FY27.
Chief executive Tony Brewer said the deal was a "key milestone" for the group, adding that the Thatcham centre adds significant capacity to its growing distribution network.
Likewise said the acquisition further supports its medium-term goal of reaching £300 million in revenue.
