Thompson and TAPS went into administration earlier this month with the loss of 80 jobs when ten branches were closed.
The deal means the 20 Thompson staff retained to assist the administrators with the sale of the business will transfer to Grafton Merchanting.
It also holds out the prospect of re-employment for some of the former Thompson and TAPS workforce.
Mark Firmin, joint administrator and regional head of restructuring at KPMG said: “We are pleased to have secured a sale that preserves this well known business and offers employment opportunities for local people.
“We wish Grafton Merchanting well for the future.”