International Stock Exchange-listed flooring business makes fourth acquisition since launch
Likewise Group, which was launched last year by two former directors of Coleshill-based Headlam Group alongside Birmingham investor Paul Bassi, has completed its fourth acquisition.
The West Midlands-based plc has paid £7.5m with a further £500,000 payable in one year for Heatseam, the Dewsbury-based distributor of residential flooring products in England and Scotland.
Two million shares have been issued to the vendor, Glen Toomes, the sole shareholder in Heatseam.
Likewise has issued 30 million new shares, raising £7.5m before expenses, and trading in the company’s shares has recommenced on The International Stock Exchange (TISE).
Heatseam’s distribution hub is in Dewsbury with two other bases in Daventry and Glasgow. Its product portfolio includes carpet, vinyl, laminate, artificial grass and accessories.
The company’s forecast for the year ending 31 March 2019 is sales revenue of £21m with profit before tax of £1.6m and net assets of £3.8m.
Likewise chief executive Tony Brewer said: “Consistent with our stated strategy when initially listing on TISE in January 2019, the acquisition gives Likewise scale and a distribution infrastructure to develop a meaningful floor covering business in both the residential and commercial markets.
“We plan further acquisitions to augment the intended organic growth in UK flooring distribution.”
Likewise Group was set up by Tony Brewer and Andrew Simpson.
Alongside Brewer, Simpson and Bassi, the board also includes chief financial officer Roy Povey.
Prior to the listing on TISE, Likewise had acquired the entire share capital of William Armes and the trade and assets of Bruce Starke & Co, which have been fully integrated into the group.
It then acquired Lewis Abbott, a floor coverings distributor based in Peckham in south east London, for £1m in cash with a further £200,000 payable in 12 months time.
Since listing on TISE in January 2019, the company has established Likewise South East trading brand in Sudbury, initially to distribute commercial products which can be extended to residential.
The Likewise Trading brand has also started supplying principally rugs and mats to retailers throughout the UK.
Law firm Gateley advised Likewise Group on the deal.