Likewise acquires Leeds floor coverings business as latest step in expansion programme
Likewise Group plc, the fast growing UK floor coverings distributor, has made another acquisition on its expansion trail.
Its subsidiary, Likewise Floors Ltd, has acquired Delta Carpets (Holdings) Ltd and its wholly-owned subsidiary Delta Carpets Ltd (Delta) for a total consideration of £3 million.
Delta, based in Leeds, is a distributor of carpets, residential vinyl, laminate, luxury vinyl tile and flooring accessories to independent flooring retailers in the North of England, Midlands and South Wales.
In the financial year ended 31 December 2021, Delta delivered sales revenue of £6.5 million and profit before tax of £0.4 million. Net assets acquired are approximately £1.1 million and are subject to a completion accounts mechanism as at 31 March 2022.
Tony Brewer, chief executive of Birmingham-based Likewise, said: “The acquisition of Delta further develops the geographical presence and customer base of Likewise.
“The increased capacity created by the new Distribution Hub in Birmingham releases capacity in Leeds to enable the logistics capability to integrate Delta and provide an enhanced service to customers.
“Many thanks to the Delta directors and shareholders; Graham, Tim, Stephen and Stuart for the manner in which the acquisition has been conducted and best wishes for the future. Furthermore, we welcome the Delta team within the Likewise structure.
“We will provide an update on current trading next Monday 4 April 2022.”
Over the next few months Delta will be relocated to the Likewise Distribution Centre in Morley, Leeds. Delta will continue to operate as a separate business under the Delta trade brand but share Likewise Group’s logistics capacity.
All of the Delta employees will be offered continuity of employment and the opportunity to transfer to Likewise. For sales and marketing, Delta will remain as an autonomous business in the Likewise structure and logistics will be integrated into the Likewise Distribution Hub.
The four Delta shareholders and directors will assist in this transition for between one and three months following completion.
Total consideration is £3 million, including £1 million of cash within Delta, £1.5 million payable in cash on completion plus 0.5 million Likewise Shares will be issued with an underpinned value of £0.5.
Application has also been made for 500,000 ordinary shares of £0.01 each to be admitted to trading on AIM, with dealings expected to commence at 8am. on 4 April 2022.
Ends (382 words)
Issued on behalf of Likewise Group plc, Unit 4, Radial Park, Birmingham Business Park, Solihull Parkway, Birmingham B37 7YN
For further information, please contact:
Andy Skinner, at ASAP PR – 07990 978257
Likewise Group plc is a distributor of floorcoverings and mattings established with the intention of consolidating the domestic and commercial floorcoverings markets to become one of the UK’s largest distributors in this sector. The UK floor and wall covering market is worth circa £3.2 billion and is expected to increase at a compound annual growth rate of 2.1% from 2019 to 2024 to reach £3.5 billion, split between the residential, commercial, public and industrial markets. Likewise Group’s strategy is to focus on the residential and commercial sectors.