An international manufacturer and distributor of innovative flooring products, Victoria Plc, has been able to raise £60.5 million through a placing to help the company in acquiring Saloni, a Spanish tile manufacturer.
Victoria is operating in Spain, Belgium, Italy, Australia, the Netherlands, and the United Kingdom. It has around 2,500 employees. The firm is the largest carpet manufacturer in the United Kingdom and is considered to be the second largest in Australia.
The deal is to be completed for a consideration of £86.2 million. It was paid to Obinesa Grupo Industrial, the owner of Saloni.
Predominantly, Saloni is a manufacturer of mid to high-end ceramic and porcelain tiles, with its principal markets being in France and Spain. The new acquisition is anticipated to improve the earnings per share for the shareholders of Victoria during the first year of ownership.
Since Geoff Wilding, its chairman, joined the firm in 2013, Victoria PLC has seen the valuation of the company rise to £1 billion from £20 million.
Wilding stated: “Saloni is a high-quality addition to the Group. Notwithstanding its strong organic growth prospects, there are meaningful operational synergies with our existing Spanish ceramics company, which we will move quickly to realise.”
He added: “Even before these synergies, the acquisition of Saloni will be materially earnings accretive in the first full year of ownership and it also continues to increase the geographic diversity of our revenues and earnings. Post-completion, over 65 per cent. of Victoria’s earnings will be generated from outside the UK – continuing our transformation into a genuinely international flooring business.”
Cantor Fitzgerald has placed a total of 7,314,626 new ordinary shares in the firm at “the placing price” amounting to 87p per share.
The combined placing shares amounted to 5.83 percent of the enlarged share capital of the firm.
The issuance of the placing shares will not be more than the existing authorities of the company. Therefore, the approval of the shareholders is not required.
The shares in the company dropped by 1.7 percent following the news.