LONDON, UK: Victoria PLC (LSE: VCP) has accomplished the acquisition of the extremely worthwhile and rising rugs division of Balta Group, the Belgium-based flooring company, collectively with its worthwhile UK polypropylene carpet and non-woven carpet companies (collectively “the Divisions”), collectively with the internationally-known brand, “Balta”.
The total consideration, taking into account working capital actions and money generation since 29 November is roughly €164 million (£139m), collectively with an anticipated small completion adjustment to be settled within the approaching weeks. This has been met entirely from the Group’s existing money balances. As at 28 February 2022, the Divisions had debt2 of roughly €55 million (£47m), which stays in place.
For the 12 months ended March 2021, the Divisions generated unaudited total revenues of €307.0 million (c. £260.2m) (FY2020: €303.5m) and normalised EBITDA of €35.5 million (c. £30.1m) (FY2020: €29.9m). As at 28 February 2022, net assets3 excluding the above debt were roughly €238 million (c. £202m).
The Acquisition will be instantly earnings-accretive. Furthermore, Victoria has acquired particularly these Divisions that present the utmost synergistic opportunities. The full integration of the Divisions with Victoria’s existing manufacturing and distribution operations over the subsequent 24-36 months are anticipated by the Board to ship in extra of €15 million per year of ongoing cost synergies, which will create significant worth for shareholders.
Victoria’s working administration have confirmed their ability to ship synergies, and are laser focused on execution of its detailed pre-closing cost and income synergy plan. A short case study of the gains achieved at one of many Group’s early carpet acquisitions, Abingdon Flooring, is available on Victoria’s web site at: www.victoriaplc.com/abingdon-case-study
Cyrille Ragoucy, Balta’s Chief Executive said, “I would like to thank the entire Balta team for the passion, the dedication and the hard work to obtain the completion of this mutually beneficial transaction with Victoria PLC. I want our colleagues at Balta Home, the Residential PP enterprise and Captiqs all of the best under the brand new ownership.”
Philippe Hamers, Victoria’s Chief Executive said, “We are excited to have accomplished the Balta Rugs and Broadloom Carpet acquisition and we’re looking ahead to developing the deliberate synergies with our incumbent business. We cannot wait to get began working closely collectively with our new colleagues. I would like to thank the promoting Balta administration team for the skilled and straightforward discussions which have led to this worthwhile deal.”