(Sharecast News) - Flooring group Victoria has further expanded its existing North American distribution business with the acquisition of US flooring distributor Cali Bamboo Holdings.
Victoria said on Wednesday that it had paid a total consideration of $76.1m for Cali, funded entirely from cash balances.
The AIM-listed group stated that the integration of Cali with its existing business would create opportunities for value-creating revenue synergies by expanding Victoria's US distribution, where it currently sells around $33.0m of flooring each year.
Victoria also highlighted that "very significantly", the acquisition also grants it access to the intellectual property and online management experience of Cali, which it will leverage to partner with key retailers to accelerate growth in its existing UK, European, and Australasian markets.
The acquisition of Cali was expected to be immediately earnings-accretive.
Chief executive Philippe Hamers said: "Victoria has been successfully selling a significant amount of product into the $29.0bn - and growing - US market for many years.
"The acquisition of Cali represents a step-change for the group presenting both revenue synergies alongside meaningful exposure to the fast-growing online sales channel. We will also be using the knowledge and online systems developed by Cali to partner with our existing key retailers in the UK, Europe, and Australia to accelerate our growth and earnings in these markets."
As of 0930 BST, Victoria shares were up 3.21% at 1,030.0p.
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