The company which makes Parker Knoll furniture has been acquired by Britain's biggest bed maker Silentnight in a �23m deal.

The move brings together two of the best known names in British furniture.

Lancashire-based Silentnight said it was attracted by the strength of loss-making rival Cornwell Parker's brands.

Apart from the reclining chairs, for which it is best known, the Parker Knoll name also appears on a range of beds and other hard furnishings.

Poor investor sentiment

Cornwell Parker chairman Robert Alcock said the deal was done "in the light of continuing poor investor sentiment towards both smaller companies and the furniture and fabrics sector in general".

He said it would have taken "some time" for the company to return to profitability on its own.

In April, Cornwell Parker announced half-year losses of �6.2m, compared to a �2.1m profit for the same period the year before.

Silentnight's 55p per share bid for Cornwell Parker is nearly 50% higher than the 37p price the furniture maker was valued at before Silentnight's interest became apparent on 22 September.