10 Feb 2022 07:00
RNS Number : 2112B
Victoria PLC
10 February 2022
For Immediate Release 10 February 2022
Victoria PLC
('Victoria' or the 'Group')
Completion of the acquisition of Graniser - additional production capacity
Victoria PLC, (LSE: VCP) the international designers, manufacturers and distributors of innovative flooring, is pleased to confirm that it has completed the acquisition of B3 Ceramics Danismanlik ("Graniser").
On 10 November 2021, Victoria announced that it had entered into an acquisition agreement to acquire Graniser for a total consideration to be paid on completion of €8.4 million (£7.1 m1), plus the repayment of approximately €39.8 million (c. £33.7m1) of net debt. The acquisition completed yesterday, following regulatory approval by the Turkish competition authorities. Settlement of the consideration and Graniser's previous debt were funded entirely from the Group's cash balances.
On-going demand and synergy opportunities
Demand for the Group's products continues to be strong, and the additional production capacity of 21 million sqm per annum that the Graniser acquisition adds to Victoria's existing 52 million sqm, is welcomed.
Approximately 70% of Graniser's revenue is denominated in Euros and the business currently generates normalised EBITDA of approximately €9 million (c. £7.7m1) per annum. Whilst the acquisition will therefore be immediately earnings-enhancing, the synergies with the Group's existing ceramic tile operations - in particular by making use of Graniser's spare production capacity - to create additional value for Victoria's shareholders will be actioned without delay.
1 Applying a GBP:EUR exchange rate of 1.18
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, Mark Whitmore Peel Hunt (Joint Broker) Adrian Trimmings, Andrew Clark Buchanan Communications (Financial PR) Charles Ryland, Chris Lane, Vicky Hayns, Tilly Abraham | +44 (0) 203 207 7800 +44 (0) 207 418 8900 +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, the United States and Australia and employs approximately 4,000 people across more than 26 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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