In April it will move from the current 1,114sqm Sutton Coldfield site to a 1,858sqm facility five miles away, increasing the branch's stock from 800 tonnes to more than 2,000 tonnes.
Managing director Tim Elliott said that the company's strong financial position has allowed it to make investment even in tough times.
He said: "Despite tough trading conditions, EBB is confident of growing its business and the time is right to expand our area into the East Midlands.
"Our investment in localised stock and distribution gives us a service advantage over our competitors."
EBB will also merge its Southampton and Farnborough operations to create a larger distribution centre, based at Farnborough.
Elliott said the Southampton branch was "dated and too small", with over 50% of local Southampton branch deliveries being sent via Farnborough.
He explained: "It makes commercial sense to use existing EBB facilities without compromising our local service."
EBB has made 11 staff redundant at the Southampton branch and has recruited an additional nine staff at Farnborough, which has gone 24 hours.
Elliott said the company is always looking for opportunities to grow its business profitably.
He added: "Should other opportunities arise we would look very closely at them."
In December 2007, EBB strengthened its northern operations by opening a new branch in Sheffield following the opening of a site in Manchester in March.
See also:
Elliott Baxter warns of hazards facing industry in 2009
