Investment group acquires £50m-turnover retailer

The duo running Leeds-based Mosaic Tile Company have bought retailer Tile Giant from Travis Perkins.

Entrepreneurs Andrew Thirkill and Adrian Hinchliffe are chairman and founder of Mosaic respectively, a £33m-turnover business that Travis Perkins holds a 34% stake in.

Now the pair have set up an investment vehicle, Coverings, that has taken 100% ownership of Tile Giant from Travis Perkins in a deal that “safeguards the future” of the retail chain.

Tile Giant has 82 stores and generates annual sales of more than £50m.

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. 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.