Topps Tiles has bought a controlling stake in tile supplier Strata as it grows its commercial business.
The retailer has swooped on 80% of Strata’s share capital in a £3.3m deal, and has options to purchase the remaining 20% of the business between now and 2021. Should Topps exercise that option, it will pay a further £2m.
Topps said the deal will “add additional scale to the group’s fast growing commercial business”.
The company has ambitions to “build a leading position” in the commercial tile market.
Topps purchased Parkside Tiles in 2017 as the first step in that plan. Strata, which was established in 2002, will be integrated into the commercial business unit but the Strata name will be retained.
Strata, which has offices in Guildford and a showroom in Bermondsey, London, is a leading supplier of tiles for commercial design projects. Its key market segments include retail, transport, residential apartment blocks, university campuses and building cladding.
In the year to March 2018, Strata made a pre-tax profit of £700,000 on sales of £4.8m.
Topps said the acquisition would be earnings accretive in its current financial year and beyond.
The retailer’s boss Matthew Williams said: “Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year. The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale.”