UK carpet maker Victoria to buy rugs unit of Belgium's Balta (updated)
29/11/2021 09:59
(Adds details on KED investment)
Nov 29 (Reuters) - Flooring products maker Victoria Plc
VCP.L said on Monday it would buy the rugs division along with
the UK polypropylene carpet and non-woven carpet businesses of
Belgium's Balta Group NV BALTA.BR for 138 million euros
($155.50 million).
Victoria, the largest carpet maker in the UK, said it would
fund the deal through existing cash resources and additional
preferred equity from the investment and acquisition arm of Koch
Industries, its third-biggest shareholder.
Koch Equity Development (KED) has agreed to invest about 150
million pounds, taking its total preferred equity investment in
Victoria to 225 million pounds since subscribing to the
company's stock a year ago.
The 126-year-old firm, which saw strong growth during the
COVID-19 pandemic as people refurbished their homes, said the
acquisition would be immediately earnings accretive.
Victoria said it expects the investment from KED, which
holds a 10.7% stake in the British company, to boost its capital
while lowering its costs on the deal.
($1 = 0.8875 euros)
(Reporting by Aby Jose Koilparambil and Muhammed Husain in
Bengaluru; Editing by Rashmi Aich and Ramakrishnan M.)
((abyjose.koilparambil@thomsonreuters.com; +919986528692;
muhammed.husain@thomsonreuters.com))