LG Harris has announced an agreement to acquire the Lynwood decorating sundries brand for an undisclosed sum.
Speaking to DIY Week this morning, LG Harris sales and marketing director Stuart Hobbs confirmed that an agreement had been reached and parties expect to finalise a deal in the next few days.
Harris will retain the Lynwood range, operating the brand in conjunction with the existing company portfolio. All operating functions including manufacturing activity and warehousing and distribution, will be moved to Harris' 60-acre West Midlands site from Lynwood's Halifax site. Lynwood will continue to operate its plastic injection moulding business, which was not part of the sale, from the Halifax facility.
Inevitably, staff will be affected. The full impact of the acquisition is not yet known, although, said Mr Hobbs, "a process of consultation with all affected employees is underway".
Negotiations have been going on since early April, Mr Hobbs told DIY Week and the acquisition dovetails well with Harris' current activity and product offer.
"From our point of view we increase our market penetration, but it also was a very good fit with the existing Harris business," explained Mr Hobbs. "Lynwood is a bit more of a 'price-fighting' brand, as opposed to Harris, which is more of a premium product. What that means is that without too much trimming it's a comfortable fit and Lynwood takes us into sectors that we don't currently cover."
The acquisition, said Mr Hobbs, comes at the end of a good year for Harris. Its financial year, to the end of June 2010, showed year-on-year growth of 27%, he told DIY Week, in spite of the economic climate.