(Alliance News) - Victoria PLC on Monday said it has bought the Rugs and UK Carpet divisions of Belgium-based flooring company Balta Group in a deal worth up to EUR138 million.
The EUR138.0 million payment is depending on the working capital movements and cash generation of the divisions up to completion of the deal, Victoria noted
The purchase will be funded through cash with additional equity to be provided by KED Victoria Investments, a substantial shareholder in Victoria.
"This selective acquisition of two highly complementary businesses will be significantly value creating for Victoria's shareholders. The rugs division has been hugely successful over many years and there are very material operating synergies between the carpet division and Victoria's existing business. These are both businesses that Victoria already knows extremely well," Chief Executive Philippe Hamers commented.
"I am pleased that we have reached this mutually beneficial agreement with Victoria. Our Rugs, Residential PP and Non-Woven businesses have found a new owner with a great operational fit. This transaction allows us to focus on our Commercial businesses in Europe and the United States and on our European Residential PA business by investing in sustainability and growth," chief executive of Balta, Cyrille Ragoucy, said.
Shares in Victoria were up 2.0% at 1,106.29 pence on Monday in London.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Victoria (VCP)