Topps Tiles has bought a controlling stake in Guildford tile supply firm Strata for £3.3 million plus a £400,000 closing adjustment in cash as it aims to push further into the commercial market.
The deal allows Topps Tiles to buy 80% of the issued share capital of Strata Tiles, with the option of buying the remaining 20% by 2021.
Up to a further £2m will be paid to Strata should Topps Tiles decide to buy the remaining shares. It said this decision would be based on performance targets over the two-year period.
Matthew Williams, Topps Tiles chief executive, said: “Our commercial business is already expanding at pace. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale.
“Strata is a well-regarded and well-run business with a strong brand; and we look forward to welcoming the Strata team into the Topps Group.”
Strata has an office in Guildford and a showroom in Bermondsey.
Topps said Strata is “located close to its customer base within the architecture and design community and is a leading supplier of quality porcelain, polished concrete, mosaics, natural stone and technical stone tiles for commercial design projects”.
“Key market segments include transport, retail, building cladding projects, university buildings and residential apartment blocks.”
Topps said Strata will be integrated into the group’s commercial business unit, established following the acquisition of Parkside Tiles in August 2017. The Strata brand will be retained.
In the financial year ended March 2018, Strata reported turnover of £4.8m and profit before tax of £700,000 unadjusted for exceptional items.
Topps said it expects the acquisition of Strata to be “accretive” to earnings in the current year and beyond.