Likewise Group PLC - Birmingham-based domestic and commercial floor coverings distributor - Acquires UK-based distributor and wholesaler of carpets Valley Wholesale Carpets for GBP30 million, comprising an initial cash payment of GBP24.0 million, deferred consideration of GBP1.0 million, and the issue of shares worth GBP5.0 million.
Acquisition is expected to be immediately earnings enhancing, increase the group's product portfolio and increase its presence, particularly in the South West of England and the Midlands.
The acquisition will be funded through existing cash resources, and the raising of GBP14.0 million through a firm placing, clawback placing and open offer of 40.0 million shares at a price of 35 pence per share. Zeus Capital and Ravenscroft acted as joint brokers for the placing.
"The Likewise Team have made significant progress over the last eighteen months and the acquisition of Valley Wholesale Carpets is a major additional step forward in the aspirations of Likewise to develop a meaningful Flooring Distribution business throughout the UK," says Chief Executive Tony Brewer.
Current stock price: 45.00 pence
Year-to-date change: up 53% since August 19
By Dayo Laniyan; dayolaniyan@alliancenews.com
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