Screwfix has announced it has acquired the stock, intellectual property, contracts and fixed assets of Connect Distribution Services out of administration.

Connect Distribution Services is a retailer of appliance spares, accessories and consumables to both tradespeople and consumers through digital and telephone channels.

Screwfix will continue to operate the business as a going concern, acquiring its e-commerce platforms, stock, intellectual property and product data for a cash consideration of £3 million.

As a result of the deal, over 400 current Connect Distribution Services employees will be transferring to Kingfisher group, which owns Screwfix.

Connect Distribution Services’ online trading brands, which include sites such as eSpares, BuySpares, 4OurHouse, and the Connect Trade Portal, will continue to operate as normal.

The company says there are many opportunities for synergy, with both businesses serving B2B and B2C customers through digital and fulfilment platforms.

Over time, Screwfix will explore opportunities to enable customers to Click & Collect orders through Screwfix’s nationwide store network. There is also potential to generate synergies with other parts of the Kingfisher Group.

John Mewett, Screwfix CEO, said: “I’m very pleased to be able to secure the future of the business of Connect Distribution Services and its brands for its customers, engineers and colleagues.

“The business’ popular ecommerce platforms have significant growth potential and they play an important role in helping tradespeople and consumers keep products in use for longer, supporting our sustainability agenda.

“As an entrepreneurial and customer-focused family business with a 50-year history, the culture is a great fit for Screwfix and we look forward to welcoming our new colleagues.”

Mark Depper, COO of Connect Distribution Services, said: “I’m delighted that Screwfix and Kingfisher have recognised the strengths of the brands and will continue to run this amazing business that my father started 50 years ago. I’m confident that this new ownership will realise the full potential of the brands.”

Mike Denny, Alvarez & Marsal, Joint Administrator of Connect Distribution Services, said: “We are delighted to have completed a sale of the majority of the business and assets of the CDSL group of companies to Screwfix, saving over 400 jobs. We wish the business every success under its new ownership.”