// Topps Tiles buys controlling stake in tile supplier Strata worth £3.3m
// It now has 80% of Strata’s share capital & can buy the remaining 20% between now and 2021
// Strata will be integrated into the commercial business unit but will keep its name
Topps Tiles has purchased a controlling stake in tile supplier Strata for £3.3 million in a bid to expand its commercial business.
The British retailer, which now has 80 per cent of Strata’s share capital as part of the deal, can choose to purchase the remaining 20 per cent between now and 2021.
If the deal were to go further, Topps Tiles will pay an additional £2 million.
Meanwhile, Strata will be integrated into Topps Tiles’ commercial business unit but will keep its current title.
Topps Tiles said it aimed to “build a leading position” in the commercial tile market.
As part of this ambition, the retailer bought Parkside Tiles in 2017.
Strata currently operates from offices in Guildford and a showroom in Bermondsey, London.
It made a pre-tax profit of £700,000 on sales of £4.8 million in the year to March 2018.
Topps Tiles chief executive Matthew Williams said: “Our commercial business is already expanding at pace, with sales in the first half growing by around three times year on year.
“The acquisition of Strata will accelerate this expansion and demonstrates our commitment to building a commercial business of quality and scale.”