Distributor BSS Group PLC said it bought Direct Heating Spares (DHS) from the Gough family shareholders for £5.7 million in cash and expects the acquisition to be earnings enhancing in the financial year which just started.
The announcement came in a pre-close trading update for the year to March 31 2009.
The group expects exceptional costs in the period to be higher than a year earlier as a result of cost cut measures gathering pace over the fourth quarter.
BSS still expects underlying earnings before exceptionals and amortisation to be in line with last year.
The group's financial position remains strong with expected net debt at end-March reduced to £86 million from £104 million.
DHS is a wholesaler and distributor of spare parts to the heating industry. For the 12 months ended March 31 2009 revenue was £10.5 million and EBITDA £1.2 million.