7th Aug 2015 06:39
LONDON (Alliance News) - Victoria PLC Friday said it has acquired Australian company Quest Carpet Manufacturers Pty Ltd and Quest Carpet Manufacturers Unit Trust for an initial cash consideration of GBP11.5 million and a deferred cash consideration of GBP4.9 million.
The carpets and floor coverings company said that the deferred consideration will be payable in GBP1.6 million installments on the anniversary of completion over the next three years.
Quest made a revenue of GBP28.1 million in the year ended June 30, and earnings before interest, tax, depreciation and amortisation of GBP3.3 million.
Victoria said it is funding the acquisition using its existing facilities.
This is Victoria's fourth acquisition in the last year and a half, following the acquisition of Westex, Abingdon Flooring, and the Whitestone Group. The group now operates from six manufacturing sites in the UK and three in Australia.
"We are delighted Victoria PLC has been able to acquire Quest Carpets. It is an extremely well-run and growing business and it took some time to persuade the current owners to accept our offer. However Quest is highly complementary to our existing business in Australia and so, while we remained disciplined with our offer, I think the vendors would agree we were quite persistent in our pursuit," Chairman Geoff Wilding said in a statement.
"The acquisition will be immediately earnings enhancing for Victoria's shareholders even before the significant benefits expected to flow from the increased scale of our operations in Australia," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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