Victoria PLC Acquisitions (0973W)
April 21 2021 - 2:00AM
UK Regulatory
TIDMVCP
RNS Number : 0973W
Victoria PLC
21 April 2021
For Immediate Release 21 April 2021
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Victoria PLC
('Victoria', the 'Company', or the 'Group')
Acquisitions of Ceramica Colli, Vallelunga and Ceramiche Santa
Maria
The Board of Victoria PLC (LSE:VCP), the international
designers, manufacturers and distributors of innovative
floorcovering is delighted to announce that it has concluded the
purchase of the assets and business of ceramic tile distributors,
Ceramica Colli and Vallelunga, and the shares of ceramic tile
manufacturer, Ceramiche Santa Maria. Located near Victoria's
existing Italian operations, t hese successful, growing brands also
bring significant additional spare production capacity. As a
result, they will not only provide an immediate earnings
contribution to the Group in their own right, but will enable
continued profitable growth at Victoria's already established
Italian business through the utilisation of that spare production
capacity.
These acquisitions follow Victoria's recent announcement of the
very strong growth that has been achieved by the Group's Italian
business. It has recently been operating at full capacity with some
production again being outsourced to third parties in order to meet
customer demand. We advised shareholders that Victoria was actively
looking at opportunities to expand further our production capacity
in Italy via a repeat of the highly successful February 2020
acquisition of the factory, plant, and brands of Ceramiche Ascot.
The acquisitions announced today achieve that outcome, alleviating
production constraints and giving Victoria's Italian business the
opportunity for further growth.
T otal consideration (on a debt-free, cash-free basis) is c.
EUR35 million and will be funded from the Company's existing
resources. The acquisitions are expected to add not less than EUR10
million per annum of EBITDA in the next 12 months. Once full
integration is completed, which is planned by the end of the
financial year, the earnings contribution is expected to increase
further. This increase will largely come from the insourcing of
tile production that is currently outsourced due to lack of
capacity, plus capitalising on the new brands to drive revenue
growth.
Executive Chairman Geoff Wilding commenting on the acquisitions said
"International demand for the ceramic tiles produced by our Italian business continues to
grow at a remarkable rate due to the successful blend of quality, style, and value. The use
of a high proportion of recycled raw materials in the tiles has proven attractive to consumers.
However, maintaining service levels for our customers has, in recent months, required the
business to outsource production to third parties to meet the ever-increasing demand. This
is expensive in terms of margin forgone - and is addressed by this acquisition.
This is the first - and smallest - of several acquisitions we expect to conclude over the
weeks and months ahead. Nevertheless, w e are delighted to have acquired these businesses,
which are immediately earnings accretive, but will also enable our Italian business to continue
its growth and create value for shareholders."
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
N+1 Singer (Nominated Adviser and Joint
Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Mark Whitmore, Tejas Padalkar
Peel Hunt (Joint Broker) +44 (0) 203 207 7800
Adrian Trimmings, Andrew Clark
+44 (0) 207 418 8900
Buchanan Communications (Financial PR)
Charles Ryland, Chris Lane, Tilly Abraham +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 and Australia
and employs approximately 3,500 people
across more than 20 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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