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Acquisition of Domus by Headlam Group PLC

December 2017

Following an in-depth process of investigation and evaluation, the acquisition of Domus by Headlam Group PLC was completed on Wednesday 6th December 2017.

Headlam is Europe’s largest distributor of floorcoverings, having grown significantly via organic growth and acquisition since 1992. The Company is headquartered in Coleshill, Birmingham, and comprises 62 wholly-owned businesses located in the UK and Continental Europe, each operating under their own trade brand and utilising their own sales capability. The businesses are supported by Headlam’s centralised and financial resources and an extensive distribution network that comprises four national distribution hubs and eighteen regional distribution centres.

The Company, now celebrating its 25th year and 62nd acquisition, is listed on the London Stock Exchange and has sales of almost £700m and employs over 2,300 people.

The acquisition of Domus provides Headlam with the opportunity to extend their activities into ceramic tiles as a product category while also significantly enhancing their exposure and involvement in the commercial specification sector where they are significantly underrepresented. Domus has a market-leading position in both these areas and will develop a collaborative approach towards maximising each party’s respective opportunity in these markets.

Domus already has a clear and ambitious plan to continue its growth in tiles and the engineered flooring sector, extend its geographical footprint in specification across the UK and internationally and provide a more coherent, direct supply service to a wider group of corporate end-user customers.

The scale and reach of Headlam’s operation and the synergetic relationship across the product groups from carpet, wood, laminate and vinyl, with the addition of tiles and other hard surfaces is compelling and provides a significant opportunity to accelerate and extend Domus’ plans. This combination provides a unique opportunity for individually focused and specialised teams to operate independently whilst benefitting from Headlam’s overall strategic vision and expertise, financial strength, and enhanced reputation as a PLC.

For Domus, it’s business as usual and, led by the same team as a distinct business unit of Headlam, the business will continue to focus on its key markets, customers and product set and retain its agile, responsive and service-orientated approach. New opportunities utilising its existing base will be provided by the partnership with a wider footprint and further showrooms planned as it continues our long history of expansion and progression.

All of its supplier partners are crucial stakeholders in the business and Domus is confident that their relationship will continue to grow stronger as our plans develop. Domus wishes to assure that after 17 years of private ownership, this business, that has been led and managed by its founders and key senior colleagues, is moving into an established, secure and dynamic environment that is certain to provide precisely the type of support and capability that will enable Domus to build on its market-leading position.

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