Alchemy backing £52.4 million cash offer
The management of Floors-2-Go, backed by private equity firm Alchemy, have offered£52.4 million, or 40p a share, for the retailer.

The recommended cash offer for Floors-2-Go is by Close Brothers, on behalf of 2FG, a subsidiary of 2FG Holdings, a company funded by Alchemy. 2FG expects to post its offer document to Floors-2-Go shareholders later today.

Since the announcement of Floors-2-Go's interim results on September 5, like-for-like sales performance has been variable. The flooring retailer said a satisfactory performance in September and October was offset by a more difficult November, but trading was in line with expectations.

Floors-2-Go chairman Alan Smith said: 'This is a good deal for shareholders, allowing them to realise their investment, and a good deal for our employees. The retail environment remains challenging and, while like-for-like sales performance in the second half of the year has improved, it is against weak year-on-year comparatives and we believe the offer price fairly reflects the future prospects of the company.'

However, according to Numis analysts: 'The offer does not feel particularly generous to us, but it has received acceptances from more than 60 per cent of the shareholders so is pretty much a done deal. The first closing date is expected to be January 3, 2007.'

Floors-2-Go is the largest specialist flooring retailer in the UK, with over 130 stores nationwide.

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