An out-of-town homewares retailer has spent £5 million buying the Dorma brand and its associated rights.

An out-of-town homewares retailer has spent £5 million buying the Dorma brand and its associated rights.

Dunelm strengthened its offering in its core market through buying the bedlinen and furnishing ranges from Dawson International in a cash deal. The brand covers products including bedspreads, curtains, duvet covers, jewellery boxes, rugs and washbags.

The acquirer adds the brand to its 89 Dunelm Mill stores and will receive royalties from overseas licensing agreements. Under the terms of the transaction, Dawson retains the right to operate a limited number of concessions in UK department stores until 2011.

“The acquisition will enable us to control and develop what is an important brand to Dunelm and will strengthen our position as a specialist homewares retailer,” chief executive Will Adderley said. “It also provides several interesting growth opportunities for the medium term.”

Dunelm was supported throughout the transaction by law firm HBJ Gateley Wareing, which was led by partner and head of intellectual property Jill Tomasin.