REG - Victoria PLC - Completion of acquisition

VictoriaAnnouncement

05/04/2022 07:00

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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, is 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 €164 million (£139m(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 €55 million
(£47m(1)), which remains in place.

 

For the 12 months ended March 2021, the Divisions generated unaudited total
revenues of €307.0 million (c. £260.2m(1)) (FY2020: €303.5m) and
normalised EBITDA of €35.5 million (c. £30.1m(1)) (FY2020: €29.9m). As at
28 February 2022, net assets(3) excluding the above debt were approximately
€238 million (c. £202m(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 €15 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                                                   +44 (0) 1562 749 610

 Geoff Wilding, Executive Chairman

 Philippe Hamers, Group Chief Executive

 Michael Scott, Group Finance Director

 Singer Capital Markets (Nominated Adviser and Joint Broker)    +44 (0) 207 496 3095

 Rick Thompson, Phil Davies, Alex Bond

 Berenberg (Joint Broker)                                       +44 (0) 203 207 7800

 Ben Wright, Richard Bootle

                                                                +44 (0) 207 418 8900

 Peel Hunt (Joint Broker)

 Adrian Trimmings, Andrew Clark                                 +44 (0) 20 7466 5000

 Buchanan Communications (Financial PR)

 Charles Ryland, Chris Lane, Tilly Abraham

 

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.)

 

 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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