Flooring distributer Likewise is set to dish out £30m on bolstering its carpet portfolio after its director’s snapped up thousands of new shares.
Shares dipped more than 2.1 per cent to 45p per share.
The firm, which listed in London earlier this year after snagging a £28m revenue in the six months to 30 June, is looking to bolster its earnings with the Valley Wholesale Carpets acquisition.
The buyout has been forecast to increase the company’s earnings by around 25 per cent in the first year.
It follows a £14m share placing, in which directors bought 800,000 shares for 35p a piece – positioning the firm for the takeover.
Valley Wholesale Carpets, which had a £47.3m revenue in its last financial year, has had its turnover swell over the past two years.
The carpet company is set to be fully integrated into the flooring firm, following the acquisition of William Arms Limited and Bruce Starke & Co, which Likewise bought prior to its IPO in August.