Heating and plumbing group BSS has bought Birmingham-based Price Tools Sales and its holding company Central England Supplies in an £8.5 million deal.
Price, based in Summer Lane off the city centre, is a national distributor of hand held power tools to the construction, infrastructure and manufacturing sectors.
It also has a small but growing business in personal protective equipment to the same customers.
BSS intends to offer the Price Tools range through its existing branch network. It will become part of the group's Domestic Division.
Price managing director Roger Weir and commercial director Mark Winzor, the two principal shareholders, are to stay on. CES had assets at December 31 last year of £5.7 million, with operating profits of £1 million.
The acquisition is expected to be earnings enhancing to BSS in the first full year after completion.
Gavin Slark, chief executive of Leicester-based BSS, said: "Price Tools is an excellent business with a skilled management team."