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A floor coverings firm has acquired a South East rival in a deal worth up to £30 million.

Likewise, which is headquartered on Birmingham Business Park in Solihull, has bought Kent outfit Valley Wholesale Carpets.

Likewise is AIM-listed and specialises in the distribution of residential and commercial floor coverings.

The company said the deal would increase its share of the º£½ÇÊÓƵ flooring market to almost six per cent of a sector which it says is a £1.9 billion º£½ÇÊÓƵ industry.

Likewise is paying an initial £24 million in cash, a deferred consideration of £1 million and the issue of five million ordinary shares in it.

Chief executive Tony Brewer said: "The Likewise team has made significant progress over the last 18 months and the acquisition of Valley Wholesale Carpets is a major additional step forward in the aspirations of Likewise to develop a meaningful flooring distribution business throughout the º£½ÇÊÓƵ."

Valley Wholesale Carpets will operate as an autonomous business within the Likewise Group which now includes a host of different names including Heatseam and H&V Carpets, following rapid growth since it was launched less than three years ago.

Valley Wholesale Carpets generated audited revenue of £47.3 million in the year to October 2021, up 32 per cent on the previous financial year, and EBITDA of circa £5.7 million, up around 89 per cent.