Leeds-based private equity firm Endless LLP said it backed the carve-out of Sheffield-based SIG plc’s Carpet and Flooring (C&F) business.
C&F has turnover of around £100 million and employs more than 380 across its national branch network including its distribution centre in Redditch.
The newly formed company will now trade as Carpet and Flooring (Trading) Limited following its separation from SIG.
Carpet and Flooring managing director Lisa Tomlin said: “This is a very exciting time for our company and for our people and we are delighted to have Endless as our new partner.
“Endless was immediately aligned with our growth ambitions and the future feels very bright.
“We are also grateful to SIG for enabling us to deliver this buyout quickly once it was clear that Carpet & Flooring no longer fitted with its core strategy.”
Having started investing its fourth fund of £525 million two years ago, this will be Endless’ 14th deal from the fund following investments in businesses such as Imtech, MTI, Arran Aromatics and Essential Fleet Services.
Endless partner Aidan Robson said: “We are delighted to be supporting Lisa Tomlin and the management team with their growth plans for Carpet & Flooring.
“The business has huge potential and we have earmarked significant investment to support the company’s operational and commercial initiatives.
“This will see the company’s national footprint expand significantly over the coming years.
“As a ‘hands-on’ transformational investor, this is exactly the sort of business we know we can help and we are excited to be taking Carpet & Flooring forward into its next growth phase.”
Endless was advised by Walker Morris (legal) and KPMG (tax).
SIG plc was advised by Squire Patton Boggs (legal) and PwC (tax).
On March 14, building products distributor SIG unveiled a new chief executive and said its 2016 revenue rose 11.2% to £2.74 billion but it made a statutory loss before tax of £106.3 million amid impairment charges at its French roofing business Larivière.
SIG said Meinie Oldersma will join SIG from Brammer Limited as group chief executive in April.