18th Apr 2019 09:11
LONDON (Alliance News) - Topps Tiles PLC on Thursday said it acquired an 80% stake in Strata Tiles Ltd, a supplier of tiles to the commercial market, for initial GBP3.3 million.
The floor covering retailer added that the acquisition also involves the grant of put and call options relating to the purchase of the remaining 20% of Strata, exercisable in 2021.
Topps Tiles will pay a cash sum of GBP3.3 million on completion of the initial 80% stake acquisition, financed from the company's existing bank facilities.
Up to a further GBP2 million will be paid on completion of the acquisition of the remaining 20% of the issued share capital, subject to performance targets.
Strata is a "leading supplier" of porcelain, polished concrete, mosaics, natural stone and technical stone tiles for commercial design projects, Topps Tiles explained. It mainly operates in the transport, retail, university buildings and residential apartment blocks markets.
Strata will be incorporated in Topps Tiles' Commercial business unit, however the Strata brand will be retained.
"Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale," Chief Executive Matthew Williams said.
Topps Tiles shares were trading up 0.9% at 78.80 pence each.
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