Background
• Floors-2-Go is the largest specialist multi-site retailer of hardwood, engineered and laminate flooring products and related fitting and floor care accessories in the UK.
• The business sells direct to the general public and trade buyers from over 130 stores located in regional clusters, predominantly in the North West, Midlands and South Wales regions of the UK.
• The majority of Floors-2-Go’s products are own label brands sourced directly from European and Chinese manufacturers.
Process & outcome
• Close Brothers Corporate Finance was appointed in November 2006 by 2FG Limited, the bid vehicle of Alchemy and management, to advise on the £61.5 million public offer for the Company which was declared unconditional in all respects on 3 January 2007
• Close Brothers Corporate Finance was responsible for managing the entire process, advising on tactics, providing advice in relation to the acquisition of shares in the market, coordinating production of the offer documentation and associated announcements and ensuring that all other advisers were performing in accordance with a tight timetable.
• Close Brothers Corporate Finance also provided assistance in the preparation of the financial model and Alchemy’s investment and exit papers.
Testimonial
Simon Farnsworth, CEO of Floors-2-Go, commented:
"Close Brothers Corporate Finance deserve a lot of praise for the role they played on this transaction. Their tactical advice was instrumental in ensuring a successful outcome and, by effectively driving the process, they achieved this in a smooth and efficient manner against a tight timetable. This is where the hard work begins for us and we relish the challenge ahead."
A spokesman for Close Brothers Corporate Finance commented:
“This is a good deal for shareholders at a significant premium. Floors-2-Go needs sustained investment to develop the business over the longer-term against a backdrop of potentially challenging retail conditions. Alchemy has considerable experience in implementing such strategies."