Joinery merchants Howdens Joinery have settled a long-running dispute with the owners of their former sister company, MFI.
The dispute follows the separation of Howdens and MFI in 2006. The two chains were originally both owned by MFI Group, but Howdens was renamed Galiform after MFI was split off and sold for £1 to private equity house Merchant Equity Partners (MEP).
The dispute relates to the net asset value of MFI when it was sold. After the sale, MEP lodged 88 separate claims against Galiform relating to the value of MFI’s assets.
Galiform have agreed to pay £8m to MEP Mayflower, MFI’s parent company, which is far lower than the £57m MEP Mayflower was originally seeking.
Yesterday, Galiform said the £8m settlement was “full and final” and would be payable on Friday, September 12.