ITAB Shop Concept AB, a Swedish seller of shop shelves and check-out counters, rose the most in almost two weeks in Stockholm trading after agreeing to buy Maxted Holding Group to strengthen its position in the U.K.
The shares rose as much as 6.1 percent, the biggest intraday jump since June 5. ITAB was up 3 percent at 102 kronor as of 11:08 a.m.
ITAB offered 22 million kronor ($3.1 million) in cash for Maxted Holding Group, a company that produces and sells joinery to clients such as Gap Inc. and Debenhams Plc. The purchase will strengthen ITAB’s position in the U.K. retail market and will have a small positive effect on earnings per share, Jonkoping, Sweden-based ITAB said today in a statement.
“The company not only has well-developed project management skills and excellent contacts in the specialty retail sector, it also has its own joinery production that creates synergies and opportunities for further strengthening our range of concepts for ITAB in the U.K.,” Chief Executive Officer Ulf Rostedt said.
ITAB entered the British market for shop equipment in 2006 through the acquisitions of City Group and Radford CGC.