January 20, 2007 / 7:57 PM / in 12 years

UPDATE 1-Alchemy to buy Floors-2-Go for 52.4 mln stg

(Adds detail, background, share price)

LONDON, Dec 13 (Reuters) - Alchemy Partners has agreed to buy British flooring retailer Floors-2-Go Plc FGO.L for 40 pence a share in cash, the companies announced on Wednesday.

Alchemy’s buy-out vehicle 2FG Holdings Ltd said the offer valued Floors-2-Go at 52.4 million pounds ($103 million), representing a premium of 54 percent to the closing price of Floors-2-Go shares on Oct. 31, the day before the offer period.

Shares in Floors-2-Go were untraded but quoted 5.4 percent higher at a mid price of 39 pence by 0805 GMT.

On completion, Floors-2-Go, which has 130 stores, would be owned by private-equity firm Alchemy Partners and Floors-2-Go’s chief executive and finance director, 2FG said in a statement.

Floors-2-Go Chairman Alan Smith said the retail environment remained challenging and the offer fairly reflected the future prospects of the company.

The joint statement said Floors-2-Go was trading in line with the board’s expectations and a satisfactory performance in September and October was offset by a more difficult November.

2FG said it had received undertakings to accept the offer from shareholders owning 62 percent of Floors-2-Go.

An extraordinary general meeting for shareholders to vote on the deal is expected on Jan. 3, 2007, the statement said.

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