LONDON, UK: Victoria PLC (LSE: VCP) 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 total consideration, taking into account working capital movements and cash generation since 29 November is approximately €164 million (£139m), 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 of approximately €55 million (£47m), which remains 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 approximately €238 million (c. £202m).
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.
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.”