The bid for the Birmingham-based company has been launched by the group’s chief executive Simon Farnsworth, finance director Edward Taylor and private equity firm Alchemy.
The bid is for 40 pence a share, higher than the 26 pence at which the company was trading the day before the approach.
Provided the deal goes through, Alchemy will increase its stake to just under 85%, Farnsworth just under 10% and Taylor about 5%.
But chairman Alan Smith said the consortium had to increase its offer, despite it being thought no other bidders entered the fray.
He was quoted in the Birmingham Evening News saying: “The first approach was at a lower price, but we managed to push them up.
“Richard Ratner at Seymour Pierce said he expected an offer of around 33p, so I really enjoyed ringing him this morning when we got 40p.
“This was a price which should be put to the shareholders and we have got 60% acceptance by shareholders already.
This is a good deal for shareholders, allowing them to realise their investment, and a good deal for employees.”
Floors-2-Go began as a family business in Birmingham in 1999, but has since evolved into a nationwide business with over 100 stores in the UK.
However, a slow down in sales forces the company to issue a profits warning in the summer.
© Crimson Business Ltd. 2006
