11th Sep 2015 06:33
LONDON (Alliance News) - Victoria PLC Friday said it has agreed to buy UK carpet underlay manufacturer Interfloor Group Ltd for GBP65.0 million in cash.
The carpets and floor coverings company said that as part of the transaction it has raised GBP30.8 million through the placing 2.5 million shares at 1,230 pence each, and has placed a further 402,633 shares at the same price to raise GBP5 million. All of the proceeds will be used to fund the acquisition.
In addition, Victoria said it has conditionally placed 711,035 shares at the same price to raise GBP8.8 million of which the proceeds will be used to augment working capital.
"We believe that Interfloor, as the market-leader, will be an excellent addition to the group, bringing the complementary established underlay brands of Tredaire and Duralay in alongside our growing portfolio of well-respected carpet and hard-flooring brands. In the UK, Interfloor and Victoria share many of the same customers and there will be significant opportunities to capitalise on this," Chairman Geoff Wilding said in a statement.
"In line with our other recent acquisitions, the acquisition will be materially earnings enhancing and value creating for shareholders. Working in conjunction with the very experienced operational management team at Interfloor, we expect to be able to drive operational efficiency improvements in future years. In the board's view this is another high quality acquisition and we are pleased to welcome Interfloor to the group," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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