LONDON, UK: Victoria Plc (LSE: VCP) has completed the acquisition of B3 Ceramics Danismanlik (Graniser), a bourse filing said.
Victoria Plc is the international designers, manufacturers and distributors of innovative flooring.
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 €8.4 million (£7.1 m), plus the repayment of approximately €39.8 million (c. £33.7m) 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 €9 million (c. £7.7m1) 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.