Likewise Group (AIM:LIKE) has agreed to buy a clutch of assets out of the administrations of Headlam Group and HFD for total cash consideration of £14.9 million plus VAT, funded entirely from existing cash resources.
The AIM-listed floor coverings distributor's subsidiaries, Likewise Holdings and Likewise Floors, are acquiring Headlam's 90,000 sq ft freehold Thatcham Distribution Centre along with its operating assets and on-site inventory, the trade and assets of Crucial Trading and Concept Flooring, and principal intellectual property, from joint administrators at Interpath.
The board believes the deal makes Likewise the largest floor coverings distributor in the UK, with an enlarged brand portfolio, extra freehold distribution capacity and a wider customer base.
Around 110 employees at Thatcham, Crucial Trading and Concept Floors are expected to transfer to the Group, and Likewise has separately agreed to act as sales agent for the administrators over the next nine months, helping sell Headlam's remaining inventory through its own distribution network without disrupting the wider market; proceeds from those sales will be shared between the Group and the administrators.
"The Acquisition is a key milestone for the Group as it now becomes the leading distributor of floor coverings in the UK," said chief executive Tony Brewer, adding that the Thatcham site "adds significant capacity to the growing Likewise distribution network".
The deal lands weeks after Likewise raised £32.5 million through an equity fundraising at 28.5p a share to help fund its separate £9.57 million purchase of a Corby high-bay distribution hub, which is due to become operational in January 2027; this latest acquisition requires no new debt or equity, drawing instead on existing cash.
The company is also making a £2.3 million on-account payment, plus VAT, tied to the inventory agency arrangement, and will occupy Headlam's Coleshill site under a nine-month exclusive licence to support that process.
Headlam generated unaudited revenue of approximately £188.8 million in the six months to 30 June, according to its last trading update, though separate figures for the specific assets Likewise is acquiring are not available since they come out of administration.
The Group does not expect the acquired assets to materially contribute to profitability for the remainder of this financial year, but anticipates a positive contribution in 2027, supporting its medium-term target of £300 million in annual revenue.
Likewise said it will provide a further update on integration and financial impact at its full-year trading update in January 2027.