Dunelm Group, owner of out-of-town retail outlet Dunelm Mill, has agreed to purchase the Dorma brand and rights for £5 million in cash from Dawson International.

Under the terms of the agreement, Dunelm will acquire the worldwide trademarks, an extensive design library and royalty fees from overseas licensing agreements.

Dorma currently supply bedlinen and soft furnishings to Dunelm, and this deal will strengthen Dunelm’s specialist proposition in homewares retailing.

Dunelm chief executive Will Adderley said: “We are delighted to have acquired the Dorma brand, one of the world’s leading bed linen brands.”

He added: “The acquisition will enable us to control and develop what is an important brand to Dunelm. It also provides a number of interesting growth opportunities for the medium term.”