Victoria PLC Completion of acquisition (2288H)
April 05 2022 - 2:00AM
UK Regulatory
TIDMVCP
RNS Number : 2288H
Victoria PLC
05 April 2022
For Immediate Release 5 April 2022
Victoria PLC
('Victoria' or the 'Group')
Completion of the Carve Out & Acquisition of
the Rugs & UK Carpet Divisions of Balta Group NV
Victoria PLC (LSE: VCP), the international designer,
manufacturer and distributor of innovative flooring, i s pleased to
confirm that, following the announcement on 29 November 2021, it
has completed the acquisition of the highly profitable and growing
rugs division of Balta Group, the Belgium-based flooring company,
along with its profitable UK polypropylene carpet and non-woven
carpet businesses (collectively "the Divisions"), together with the
internationally-known brand, "Balta" (the "Acquisition"). More
information about the Acquisition is available on Victoria's
website at www.victoriaplc.com/balta-presentation.
The total consideration, taking into account working capital
movements and cash generation since 29 November is approximately
EUR164 million (GBP139m(1) ), including an expected small
completion adjustment to be settled in the coming weeks. This has
been met entirely from the Group's existing cash balances. As at 28
February 2022, the Divisions had debt(2) of approximately EUR55
million (GBP47m(1) ), which remains in place.
For the 12 months ended March 2021, the Divisions generated
unaudited total revenues of EUR307.0 million (c. GBP260.2m(1) )
(FY2020: EUR303.5m) and normalised EBITDA of EUR35.5 million (c.
GBP30.1m(1) ) (FY2020: EUR29.9m). As at 28 February 2022, net
assets(3) excluding the above debt were approximately EUR238
million (c. GBP202m(1) ).
The Acquisition will be immediately earnings-accretive.
Furthermore, Victoria has acquired specifically those Divisions
that provide the maximum synergistic opportunities. The full
integration of the Divisions with Victoria's existing manufacturing
and distribution operations over the next 24-36 months are expected
by the Board to deliver in excess of EUR15 million per year of
ongoing cost synergies, which will create significant value for
shareholders.
Victoria's operating management have proven their ability to
deliver synergies, and are laser focused on execution of its
detailed pre-closing cost and revenue synergy plan. A short case
study of the gains achieved at one of the Group's early carpet
acquisitions, Abingdon Flooring, is available on Victoria's website
at: www.victoriaplc.com/abingdon-case-study.
Cyrille Ragoucy, Balta's Chief Executive said,
"I would like to thank the whole Balta team for the passion, the
dedication and the hard work to achieve the completion of this
mutually beneficial transaction with Victoria PLC . I wish our
colleagues at Balta Home, the Residential PP business and Captiqs
all the best under the new ownership."
Philippe Hamers, Victoria's Chief Executive said,
"We are excited to have completed the Balta Rugs and Broadloom
Carpet acquisition and we are looking forward to developing the
planned synergies with our incumbent business. We cannot wait to
get started working closely together with our new colleagues. I
would like to thank the selling Balta management team for the
professional and straightforward discussions which have led to this
successful deal."
(1) Applying a GBP:EUR exchange rate of 1.18
(2) Excluding IFRS 16 operating leases
(3) Source: Balta management accounts; prior to any fair value
adjustments or recognition of intangible assets on acquisitions
under IFRS
For more information contact:Victoria PLC
Geoff Wilding, Executive Chairman
Philippe Hamers, Group Chief Executive
Michael Scott, Group Finance Director +44 (0) 1562 749 610
Singer Capital Markets (Nominated Adviser
and Joint Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Richard Bootle
Peel Hunt (Joint Broker) +44 (0) 203 207 7800
Adrian Trimmings, Andrew Clark
+44 (0) 207 418 8900
Buchanan Communications (Financial PR)
Charles Ryland, Chris Lane, Tilly Abraham +44 (0) 20 7466 5000
About Victoria
Established in 1895 and listed since 1963
and on AIM since 2013 (VCP.L), Victoria
PLC, is an international manufacturer and
distributor of innovative flooring products.
The Group, which is headquartered in Kidderminster,
UK, designs, manufactures and distributes
a range of carpet, flooring underlay, ceramic
tiles, LVT (luxury vinyl tile), artificial
grass and flooring accessories.
Victoria has operations in the UK, Spain,
Italy, Belgium, the Netherlands, Turkey,
the United States and Australia and employs
approximately 4,500 people across 30 sites.
Victoria is the UK's largest carpet manufacturer
and the second largest in Australia, as
well as the largest manufacturer of underlay
in both regions.
The Group's strategy is designed to create
value for its shareholders and is focused
on consistently increasing earnings and
cash flow per share via acquisitions and
sustainable organic growth. (Further information
about Victoria can be found on its website,
www.victoriaplc.com.)
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END
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