19th Aug 2024 16:13
(Alliance News) - Topps Tiles PLC on Monday announced it has acquired various assets from its troubled counterpart, CTD Tiles Ltd, after the latter entered administration.
Leicester-based Topps Tiles said it has paid GBP9 million for CTD Tiles brands, 30 stores, selected stock, and all of its related intellectual property. The consideration will be funded from its existing resources.
CTD Tiles was a supplier of tiles to the retail, trade and commercial markets which brought in annual revenue of around GBP75 million, around GBP50 million of which came from the 86 stores it operated across the UK. It entered administration on Monday.
CTD Tiles was sold to Aurelius Investments by French construction parts manufacturer Compagnie de Saint-Gobain SA back in 2022 for an undisclosed amount.
Topps said it will acquire 30 stores with total annual sales of around GBP20 million, while the remaining 56 will be disposed of through the administration.
CTD Tiles also brought in around GBP16 million annual revenue from its commercial business from the volume housebuilder segment, and GBP8 million or so from its Architect & Designer segment.
"As well as adding 30 new well-established stand-alone stores to the Topps Group estate, the acquisition will provide Topps Group with the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the A&D segment," Topps said.
Topps said it will keep the CTD brand for the acquired stores and other assets. It expects the acquisition to be accretive to earnings in the financial year ended next September.
"CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer," Topps Chief Executive Officer Rob Parker said.
Shares in Topps Tiles rose 1.8% to 45.45 pence in London on Monday afternoon.
By Elizabeth Winter, Alliance News deputy news editor, Global services
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