Kelso Group Holdings (LSE:KLSO) told investors it has bought 5m shares in Likewise Group, at an average price of 30p.
That stake is now valued at around £2m, as Likewise's share price rose to around 40p, giving the company a market capitalisation of around £144m.
It comes as Likewise seeks expansion following the acquisition and consolidation in the UK flooring industry, via a deal that saw it acquire assets of rival Headlam after it fell into administration.
"With Headlam in administration and Likewise's acquisition of its new distribution complete, Likewise has a unique opportunity to accelerate its market share gains and its latest results show growth now converting into profit," said Kelso chairman Sir Nigel Knowles.
Kelso is a main market-listed investment company that has previously reported holdings in TheWorks.co.uk, NCC Group and CVS Group, and booked a 119% realised gain on a stake in Filtronic earlier in the year.
Kelso's Likewise holding represents close to 10% of the group's gross investments.
The investment group's chief executive, John Goold, began his City career with Headlam as his first corporate client in 1987 and previously helped float Likewise on AIM in 2021; Kelso said it intends to engage constructively with the Likewise board on strategy, capital allocation and investor relations.
Likewise trading
Likewise, founded in 2018 by Tony Brewer, Adrian Laffey and Andrew Simpson, is a UK floorcoverings distributor that grew revenue from zero to £163m in 2025 and expects it to exceed £200m this year. Its founders previously built Headlam Group into the UK's market leader in the same sector, with Brewer serving as chief executive from 2000 to 2016 and Headlam's market capitalisation peaking at £560m in May 2017.
Headlam, which reported revenue of £499m in 2025, appointed administrators on 8 September after what Kelso describes as a build-up of debt and strategic errors, following an underlying loss before tax of £40m in 2025 and the exhaustion of its £85m asset-based lending facility.
Likewise announced on 7 October that it had acquired selected Headlam assets from the administrators for £14.9m in cash, including the 90,000 sq. ft. freehold Thatcham distribution centre, the Crucial Trading and Concept Flooring businesses, Headlam's principal intellectual property and around 110 transferring employees.
The deal is funded from existing cash with no new debt or equity; Likewise expects no material profit contribution in 2026 but a positive contribution in 2027, and will also sell Headlam's remaining inventory on behalf of the administrators over nine months, receiving a £2.3m payment on account.
Likewise's interim results on 28 September showed revenue up 15.4% to £90m in the six months to 30 June, with trading accelerating to a 29.1% sales rise between 1 July and 25 September; the company said full-year underlying profit before tax is now expected to come in materially ahead of expectations.