Northampton-based Travis Perkins has bought 30 per cent of the Somerset-based business for £5 million, along with an option to buy the remainder.

It was set up in 2003 by Mark Goddard-Watts, the founder of rival tool supply firm Screwfix, which he left after a takeover by B&Q owner Kingfisher.

More than half of Toolstation's business comes through the internet and call centre, for which it provides next-day delivery.

By contrast Wickes and Tile Giant-owner Travis Perkins said it achieved a "tiny" proportion of internet and direct sales, with business mainly coming from its 1,200-strong network of stores.

Bridgwater in Somerset-based Toolstation supplies 10,000 different product lines from 10 other branches across the UK.

The business said plans for 70 more branches within the next five years were unchanged by the Travis deal.

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Under its terms, Travis will offer £7 million to pay off loans and provide an extra £30 million of funding over the next four years. It expects this to be paid back within six years.

Travis also has the right to buy the remaining 70% of Toolstation from its founding shareholders in four years time, for a price dependent on profits.

The Northampton-based group said it would use its sourcing expertise to help accelerate Toolstation's growth, at the same time as using the firm's e-commerce and warehousing expertise.

Travis chief executive Geoff Cooper said the deal was a "significant advance" for his group.

"Our customers increasingly expect products from us through a variety of distribution channels, delivered to them or collected by them via a time, place and mechanism that suits their needs.

"The experienced Toolstation team have already developed one successful business in this market and we are delighted to be working with them with the aim of creating the market leader using their skills and our scale and resources."

Toolstation, which also has a franchise operation in Holland, earned £21.4 million of revenues during the last 12 months and the business broke even on an underlying earnings basis. It made pre-tax losses of £300,000 for the year to July 31.