Bradford mail order giant Grattan has been given a chance to offer a wider range of goods thanks to its parent company Otto Versand acquiring London home shopping firm Freeman.

The Hamburg-based group has bought Freeman, which has a major warehouse and distribution centre in Peterborough, from the Sears group in a multi-million pound deal.

The acquisition will allow Grattan and Freeman to use Otto Versand's global purchasing power.

Otto Versand has proved to be a good parent company for Grattan, which saw its £18 million loss in 1991 when it was acquired by the Germans turn into £22 million profit last year.

The company has invested in a call centre in Bradford, started 24-hour delivery and forged a link with Tesco which has created extra jobs bringing Grattan's total to 5,000 employees.

The takeover pushes up Otto Versand's home shopping market share in the UK to 15 per cent from eight per cent.

The market leader is Man-chester-based Great Universal Stores at 24 per cent.

Walter Blackwood, the firm's logistics director, said: "It is too early to say what the direct impact of the takeover will be at the moment. What we will be looking at is the two firms working separately but working together on certain things such as the worldwide buying power we now have."

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