Topps Tiles, a national UK supplier that deals in natural stone bathroom tiles and other kinds of tiles, recently acquired a controlling stake in one of their rivals, the Guildford tile firm Strata, in a transaction with a total value of £3.7M, £3.3M as initial value, with £400,000 as closing adjustment. This acquisition is part of the tile supplier’s plans to push harder into the commercial market.
This transaction allows Topps Tiles, the UK’s biggest tile supplier selling stone bathroom tiles and other kinds of tiles, to buy 80% of the share capital of Strata Tiles, while also giving them the ability to buy the remaining 20% at a later date. The remaining 20% would cost at least £2m to acquire, should Topps Tiles opt for it. Reportedly, this decision will be made based on company performance over a two-year period.
Topps Tiles CEO Matthew Williams issued a statement on the acquisition, saying that their commercial business is growing at a good rate, and the company’s acquisition of Strata will go a long way to boosting this expansion, and demonstrate the company’s commitment to creating a commercial business in the UK that boasts both quality and scale.
He adds that Topps acquired Strata because it’s a respected businesses with solid business operations, as well as a strong, distinctive brand, and that they look forward to welcoming its team into the Topps Group.
Strata operates a Guildford office, as well as a showroom in Bermondsey.
Topps states that Strata is positioned in close proximity to their target demographic in the architecture and design community, which is desirable for a supplier of quality porcelain, mosaics, natural stone bathroom tiles and technical stone tiles, and other products, for commercial design projects.
The company says that they’ll be working to integrate Strata into the group’s commercial business unit whilst retaining its own brand. Topps stated that they expect Strata’s acquisition to be a boon to company earnings starting in the current financial year, and beyond.
In the financial year that ended in March 2018, Strata’s end year report noted a turnover of £4.8m, alongside a pre-tax profit of £700,000, unadjusted for exceptional items.