FTSE-listed Topps Tiles has acquired CTD Tiles out of insolvency for £9 million and is aiming to enter the residential construction segment.
The purchase includes CTD Tiles’ brands, 30 stores, select inventory and customer data, Topps said.
CTD, which supplied tiles to retail, trade and commercial markets, filed for bankruptcy on August 19 after a general downturn in the industry led to profits falling by around 30 percent.
Before entering bankruptcy, CTD operated 86 stores across the UK and had a total turnover of around £50 million.
The businesses acquired by Topps accounted for just over a third of CTD’s sales. The remaining businesses will be sold through insolvency administration, Topps said.
Topps said the acquired businesses and other assets “will continue to operate under the CTD brand” and would provide Topps with the “opportunity for a significant entry into the homebuilding segment.”
The group has recently seen a decline in sales as customers shy away from expensive DIY items.
Rob Parker, CEO of Topps Group, said: “CTD’s brand and assets are an excellent fit with our existing business and the acquisition creates a new and complementary specialty tiles business within the Topps Group.”
“CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offerings within each unit and a number of market-specific sub-brands that are distinct from our existing offering.
“The acquisition of 30 high-quality stores and select supporting infrastructure, as well as the intellectual property and customer data we need to serve CTD’s existing commercial customers in the residential construction and architecture and design markets, provides us with the opportunity to make significant progress toward achieving our ‘Mission 365’ revenue goal.”
“We are excited about the future of CTD within the Topps Group and look forward to welcoming our new colleagues to the company.”
