Investment group strikes deal with Travis Perkins to acquire Tile Giant

Travis Perkins has sold retail chain Tile Giant as part of its strategy to focus on its trade customers.

The Northampton-headquartered business has offloaded the 82-store chain to an investment vehicle, Coverings, set up by entrepreneurs Andrew Thirkill and Adrian Hinchliffe.

Hinchcliffe is the founder and managing director and Thirkill is the chairman of Leeds-based Mosaic Tile Company, a £33m-turnover business that Travis Perkins holds a 34% stake in.

Now the pair have taken 100% ownership of Tile Giant from Travis Perkins in a deal that “safeguards the future” of the retail chain.

Thirkill, who is also chairman of Age Partnership Group and Pure Retirement, said: “These have been turbulent times for the tile industry, but we firmly believe in what Tile Giant has created with Travis Perkins, with its core proposition of delivering high quality, commercially competitive tiles and accessories to the UK retail market.

“Home improvement retailers have seen a strong return to business post lockdown, with sales buoyant as homeowners look to reinvest within their properties.”

Travis Perkins has owned Tile Giant since 2007 and in that time has nearly trebled its store portfolio and increased its annual sales to more than £50m.

However the Northampton-headquartered business has decided to focus on its trade customers and has sold the retail chain as part of its simplification strategy.

Tile Giant will continue to operate as a separate business with its existing senior leadership team in place.

James Heese, managing director of Tile Giant, said: “Coverings recognise that they have acquired a fantastic business with significant growth potential.

“This is a new and exciting chapter for Tile Giant and we’re delighted to be working with Coverings Ltd to accelerate our growth over the coming years.”

Roger Esler, who led the DSW Corporate Finance team that advised Coverings, said: “Deals with commercial merit are still getting done where there is pragmatism on all sides.

“The economic recovery is taking hold and there is growing optimism for the UK, despite the headwinds.”

Dan McCormack, who led the Lupton Fawcett team providing legal advice, added: “I’m sure the resilience shown by the team to get the deal done in spite of the tough economic climate we are all trying to navigate through at the moment will stand them in good stead and help them fulfil the obvious potential for growth that Tile Giant has.”

Travis Perkins was advised by Freeths.