6th Aug 2019 11:50
(Alliance News) - Victoria PLC said Tuesday it has acquired the business and certain assets of Spanish ceramic flooring manufacturer Ibero-Alcorense SL, also known as Ibero Porcelanico.
Shares in the flooring designer and manufacturer were up 0.5% at 527.50 pence on Tuesday.
On Monday, Victoria confirmed press reports that is in discussions to acquire Ibero, in line with its growth strategy including making selective acquisitions.
The exact price for the acquisition has not been disclosed, however Victoria said it has been split into an initial payment on completion and a contingent payment in May 2020, subject to Ibero meeting a performance target.
The initial payment will represent less than 3x annual earnings before interest, taxes, depreciation and amortisation for the last 12 months before completion.
Should the contingent payment be paid in full, the total purchase price will reflect a multiple of less than 5x Ebitda for the 12 months before the deal's completion.
For 2018, Ibero's adjusted Ebitda was EUR3.1 million, on revenue of EUR30.9 million.
Victoria will fund the acquisition from its existing resources, and the deal is expected to be immediately earnings accretive on completion.
"Ibero is a very high-quality manufacturer and is an excellent commercial fit with our existing Spanish ceramic operations and I am delighted that Victoria has secured this acquisition. In keeping with our acquisition criteria, Ibero is very well invested in terms of its manufacturing facilities and will be immediately earnings accretive and positively cash generative on completion," said Chair Geoff Wilding.
"In addition, there are also some material operational synergies with our existing Spanish businesses, which we will realise over the next 12 months. These synergies will not incur any meaningful exceptional costs," Wilding added.
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