Merchant group spends £12m to extend distribution base.
Travis Perkins, the builders' merchant and home improvement retailer, has acquired tiles and accessories retailer, Tile Giant for £12m.
Travis Perkins will pay for the company in a mix of cash and loan notes plus a further payment dependent upon future performance and expansion of the business over the period to December 2010.
The move makes Tile Giant Travis Perkins' seventh brand. Other brands include Wickes, Benchmarx Kitchens & Joinery, and City Plumbing Supplies.
For the financial year ended 30 April 2007, Tile Giant generated profits before tax of £0.3m, with gross assets of £4.3m.
Tile Giant is a relatively young business operating from 29 outlets, predominantly in the North of England and the Midlands, with an average trading space of approximately 4,000 - 5,000 sq ft.
Eleven of the 29 stores opened this year. Tile Giant expects annual revenues of about £10.6m with pretax profit of about £0.9m.
John Carter, chief operating officer of Travis Perkins said he is looking forward to working with Tile Giant md Mo Iqbal.
He said: "Tile Giant has grown rapidly and is set to become a major force in this attractive and growing market.
"The acquisition provides potential for significant further growth in our business and branch network."