LONDON, UK: Victoria PLC announce the further expansion of its existing ceramic tile business and operations, having agreed to acquire Graniser, a mid-market manufacturer and exporter of ceramic tiles based in Izmir, Turkey.
Graniser prepares and files audited statutory financial accounts in Turkey, which were audited by Deloitte from 2013 to 2019, with KPMG appointed in 2020. The accounts are prepared in Turkish Lira, with c. 70% of Graniser’s revenue denominated in Euros.
Total consideration to be paid on completion is €8.4 million, which will be funded entirely from the Group’s cash balances. In addition, Graniser has approximately €39.8 million of net debt (including shareholder loans), which will be repaid on completion.
Established in 1997, Graniser has been ultimately owned 75% by the Austrian investment company, Bancroft Group and 25% by the European Bank of Reconstruction and Development since 2012. It has robust financial reporting structures in place and its financial statements have been audited by either Deloitte or KPMG for the last eight years.
The company manufactures ceramic tiles from a single 75,000 square meter production facility it owns, close to Izmir port, a major export hub. This factory, which incorporates a cogeneration power plant to improve efficiency and generate energy savings, has a current annual production capacity of 20.8 million square meters, which is not fully utilised, with the opportunity to expand output considerably with limited capital expenditure. (By comparison, Victoria’s existing ceramic tile operations have an annual production capacity of 52 million sqm).
Exports, predominantly to the USA, Israel, the UK, and Germany, accounted for c. 63% of sales in 2020 and c. 75% is expected in 2021, resulting in a significant proportion of Euro and US Dollar-denominated income and Turkish Lira-denominated costs.
Graniser has an experienced and well-respected management team, which will be fully integrated with Victoria’s well-established ceramic tiles management team. www.victoriaplc.com