A £14.9m cash swoop on the wreckage of Headlam catapults the AIM-listed challenger to the top of Britain's flooring trade.
Likewise Group (AIM: LIKE) has paid £14.9m in cash to acquire key assets out of the administration of Headlam Group, the collapsed main-market flooring giant, in a deal the company says makes it the UK's largest floor coverings distributor overnight.
The transaction, funded entirely from a £32.5m equity raise completed just weeks earlier, hands Likewise Headlam's freehold distribution centre in Thatcham along with the trade, assets and intellectual property of specialist brands Crucial Trading and Concept Floors. Around 110 staff will transfer to Likewise as part of the deal.
Headlam, long the dominant force in UK flooring distribution, fell into administration in September after a prolonged period of trading difficulty. Likewise has structured the deal as an acquisition of specific assets rather than the company itself, leaving administrators to wind down the remainder of the business. Separately, Likewise has agreed to assist administrators in selling off Headlam's remaining stock over a nine-month period through its own distribution network, a move that could generate further commercial benefit without the risk of a full corporate takeover.
Chief executive Tony Brewer called the purchase 'a key milestone' for the group, saying it adds significant capacity to Likewise's distribution footprint, particularly in southern England, while broadening its brand portfolio with well-known names in the specialist flooring space. The company has set a medium-term target of reaching £300m in revenue, and management believes the enlarged network and product range support that ambition.
Likewise has flagged that the acquisition will not have a material impact on profit this year, but expects it to contribute positively from 2027. Investors will be watching integration progress and how smoothly the Thatcham site and the newly acquired brands are folded into the wider business, as well as how the stock disposal arrangement with Headlam's administrators plays out over the coming months.
This report is based on Likewise Group’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: CHUTTERSNAP on Unsplash.
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