Victoria PLC Completion of Graniser acquisition (2112B)

TIDMVCP

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, i s 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 EUR8.4 million (GBP7.1 m(1) ), plus the repayment of approximately EUR39.8 million (c. GBP33.7m(1) ) 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 EUR9 million (c. GBP7.7m(1) ) 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              +44 (0) 203 207 7800 
 
  Buchanan Communications (Financial PR)       +44 (0) 207 418 8900 
  Charles Ryland, Chris Lane, Vicky Hayns, 
  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, 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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